WISCONSIN 


INSURANCE    LAWS 


As  Amended  by  the  Legislative  Session  of  1921 


PLATT  WHITMAN 

Gommissioner  of  Insurance 


PUBLISHED  BY  AUTHORITY  OF  LAW 

ELMER  S.  HALL 

SECRETARY  OF  STATE 


^^t^ 


MADISON.  WISCONSIN 
1921 


TABLE  OF  CONTENTS 


Showing  the  sectional  divisions  of  the  statutes,  by  chapters,  relating  to 

insurance. 

CHAPTER  20. — Appropriations. 

Sections    20.06,    20.55,    20.555,    20.56,    20.57,    20.73,    appropriations 
affecting  insurance. 

CHAPTER  40.— School  District  Law. 
40.30  (6)   (a  and  b). 

CHAPTER  58.— Asylums,  etc.,  58.06. 

CHAPTER  63ee. — Assessment  of  taxes. 

Section  1038  (13)  Exemptions  of  personal  property  of  insurance 
companies. 

CHAPTER  63ff.— Inheritance  tax. 

Valuation    of    future    estates    by    commissioner.      Section    72.15 
(4  and  5). 

CHAPTER  63hh. — Taxation  of  insurance  companies. 

Sections  76.30  to  76.37,  taxes  and  fees  required  of  insurance  com- 
panies. 

CHAPT:^R  85. — Provisions  relating  to  corporations  generally. 

Sections   1748,   1749,   1760,   1760m,   1761,   1763,   1764,   1770,    1770b, 
1770J,  applicable  to  insurance  corporations. 

CHAPTER  86. — Organization,  powers  and  dissolution  of  corporations. 
Sections  1772,  1773,  1774,  1774n,  1776,  1789,  applicable  to  insur- 
ance corporations. 

CHAPTER  89.— Insurance  Corporations.     Sections  1895m  to  1978d. 

General  provisions  relating  to  insurance, — sections  1895m  to  1921. 

Compensation  insurance  board, — sections  1921 — 1  to  1921 — 29. 

Liability  insurance,  1921—30  to  1921—36. 

Underwriters  boards, — sections  1922  to  1926m. 

Town  mutual  fire  insurance  companies,  sections  1927  to  1941n. 

Standard    fire    insurance    policy, — sections    1941x,    1941 — 61    to 

1941—65. 
Miscellaneous    provisions    relating    to    fire    insurance, — sections 

1942  to  19451. 
Fire  rate-making  bureau, — sections  1946 — 1  to  1946 — 18. 


677242 


;MfeeeL''.c^i\feeti'3'  'Kovipigps'  relating  to   different   classes   of  insur- 
*''  ''aiice,  -iWW  to  i9iki'. '  '■  ■ . 
State  fire  marshal, — sections  1946h  to  1946q. 
Life  Insurance: 

Definitions, — 1946x. 

Domestic  stock  life  companies, — 1947,   1947a. 

Domestic  mutual  life  companies, — 1947c  to  1955o — 5. 

Assessment  life  companies, — 1955y — 1,  1955y — 3. 

Reinsurance — domestic,  life,  health  and  accident  companies, 
—1955—21  to  1955—26. 

Fraternal  Insurance, — sections  1956  to  1959. 

Health  and  accident  insurance, — section  1960. 

Suretyship  insurance,— 1966— 33  to  1966— 49a. 
Department  of  insurance, — 1966y  to  1972c. 
Miscellaneous  provisions. — Sections  1973  to  1978. 
State  fire  insurance,— 1978a  to  1978d. 

CHAPTER  90m.— State  life  insurance.— Section  1989m. 

CHAPTER  108.— Rights  of  married  women.— Sections  2347,  2347b. 

CHAPTER  110a.— Industrial    Commission    (Fire   Protection),    2394—52 
(5a  and  5b),  2394—71. 

CHAPTER  118. — Civil   actions   against   insurance   companies. — Section 

2609a. 
CHAPTER  119.— Place  of  trial  of  civil  actions,  2619. 

CHAPTER  120. — Manner   of   commencement    of   civil   action. — Section 
2637. 

CHAPTER  130.— Executions.— Sections  2982   (19). 

CHAPTER  140. — Proceedings   against   insolvent   corporations.    3218   to 
3219m. 

CHAPTER  142.— Collection  of  forfeitures.— Sections  3299,  3300. 

CHAPTER  161.— Costs  and  fees.— Section  3783a. 

CHAPTER  166. — Assignment     of     dower     and     homesteads. — Section 
3871m. 

CHAPTER  176.— Evidence.— Sections  4182,  4182a,  4183,  4202t. 

CHAPTER    182.— Offenses    against    public    property.— Sections    4405, 
4438e,  4438em,  443SJ. 

CHAPTER  185.— Offenses  against  jmblic  policy.— Sections  4549g,  4575c, 
4575d,  4575e,  4575s. 


Insurance  Laws  of  Wisconsin 


CHAPTER  20— APPROPRIATIONS 

Refunds. 

20.06  There  are  appropriated  from  the  proper  respective  funds,  from 
time  to  time,  such  sums  as  may  be  necessary,  for  refunding  or  paying 
over  moneys  paid  into  tHe  state  treasury  as  follows: 

(1)  Moneys  paid  into  any  fund  of  the  treasury  as  a  deposit  or  ad- 
vance payment;  and  if  such  moneys  have  been  credited  to  an  appro- 
priation, such  appropriation  shall,  at  the  time  of  making  such  refunds, 
be  charged  therewith. 

(2)  Moneys  paid  into  the  state  treasury  in  error;  but  no  such  re- 
fund shall  be  made  except  upon  the  written  approval  of  the  governor, 
secretary  of  state,  state  treasurer,  and  attorney-general. 

(5)  Any  balances  remaining  at  the  end  of  any  calendar  year,  of  any 
deposits  in  the  state  treasury  made  by  insurers  in  anticipation  of  fees, 
as  provided  in  section  1973m  of  the  statutes. 

Commissioner  of  insurance. 
20.55     There  is  appropriated  from  the  general  fund  to  the  commis- 
sioner of  insurance: 

General  administration. 

(1)  Annually,  beginning  July  1,  1913,  fifty-two  thousand  three  hun- 
dred dollars,  for  the  execution  of  his  functions  as  commissioner  of  in- 
surance.   Of  this  there  is  allotted: 

(a)  To  the  commissioner  of  insurance  an  annual  salary  of  five 
thousand  dollars. 

(b)  To  the  commissioner  of  insurance,  such  sum  as  may  be  required 
for  his  actual  and  necessary  expenses  incurred  in  representing  this 
state  at  the  annual  meeting  of  the  national  convention  of  insurance 
commissioners. 

Examination  of  companies. 

(3)  Annually,  such  sums  as  may  be  necessary  for  examination  of 
insurance  companies  as  provided  in  sections  1897t,  1916,  1959,  and 
1968;  but  the  total  amount  expended  under  this  appropriation  in  any 
one  fiscal  year  shall  not  exceed  the  total  amounts  charged  to  such 


20.56  0  Ch.  20 

companies   for  examinations  during  sucli   fiscal  year,   which  amounts 
shall  be  paid,  within  one  week  after  receipt  into  the  general  fund. 

State  fire  marshal. 

(4)  Annually,  beginning  July  1,  1919,  twenty-two  thousand  dollars, 
for  the  execution  of  the  functions  of  the  commissioner  of  insurance  as 
ex  officio  state  fire  marshal.    Of  this  there  is  allotted: 

Assistant  fire  marshal. 

(a)  To  the  deputy  commissioner  of  insurance,  if  appointed  chief 
assistant  fire  marshal,  such  portion  of  his  salary  as  shall  be  appor- 
tioned by  the  commissioner  of  insurance  pursuant  to  section  1946h. 

Assistants  to  fire  marshal. 

(b)  Such  salary  or  compensation  of  assistants,  deputies,  clerks, 
stenographers  and  other  employes  under  the  commissioner  of  insur- 
ance as  ex  officio  state  fire  marshal,  as  shall  be  fixed  by  said  commis- 
sioner with  the  approval  of  the  governor. 

Fees  and  mileage. 

(c)  Such  sums  as  may  be  necessary  for  witness  fees,  and  fees  and 
mileage  to  officers,  as  provided  in  section  1946k,  subsection  1  of  section 
1946n,  and  section  1946q. 

Investigation  of  fires. 

(5)  Annually,  such  sums  as  may  accrue  to  the  commissioner  of 
insurance  as  ex  officio  state  fire  marshal,  on  account  of  dues  to  fire  de- 
partments, under  subsection  4  of  section  1926,  to  be  expended  by  him 
for  making  investigations  as  provided  in  said  subsection  and  section 
19461. 

Valuation  fees  to  be  paid  into  general  fund. 

(6)  All  moneys  received  by  the  commissioner  of  insurance  pur- 
suant to  the  provisions  of  subsection  22n  of  section  1959  of  the 
statutes,  shall  be  paid  within  one  week  after  receipt  into  the  general 
fund,  and  are  appropriated  therefrom  to  carry  out  the  provisions  of 
said  section. 

Compensation  insurance  board. 

20.555  There  is  appropriated  from  the  general  fund  to  the  compensa- 
tion insurance  board,  annually,  beginning  July  1,  1919,  not  to  exceed 
ten  thousand  dollars,  to  carry  out  the  provisions  of  sections  1921 — 1 
to  1921—28,  inclusive. 

State  aid  for  fire  protection. 
20.56     There  is  appropriated  from  the  general  fund: 

Firemen's  associations. 
(1)     Annually,   beginning   July    1,    1913,    two   thousand    dollars,    for 
state  aid  to  firemen's  associations,  to  be  distributed  as  follows: 


Ch.  20  7  207:^ 

(a)  On  or  before  the  first  day  of  August  of  each  year  the  secre- 
tary of  each  firemen's  association  in  Wisconsin  may  file  with  the 
secretary  of  state  an  itemized  statement,  duly  verified,  of  all  moneys 
disbursed  by  the  association  during  the  twelve  months  ending  the 
preceding  first  day  of  July,  including  separately  a  statement  of  all 
moneys  disbursed  for  prizes  and  premiums  in  competition  and  con- 
tests held  by  such  associations  during  such  twelve  months. 

(b)  On  or  before  the  first  day  of  September  of  each  year  there 
shall  be  paid  to  the  treasurer  of  each  association  filing  such  state- 
ment, and  having  held  during  the  year  a  firemen's  tournament  actually 
participated  in  by  companies  from  not  less  than  five  cities  or  villages 
in  the  state,  and  having  previously  held  at  least  five  annual  tourna- 
ments, a  sum  equal  to  eighty  per  cent  of  the  amount  disbursed  by 
said  association  for  prizes  and  premiums  in  all  competitions  and  con- 
tests held  by  such  association  during  the  twelve  months  ending  on 
such  first  day  of  July;  but  not  exceeding  two  thousand  dollars  to  the 
Wisconsin  state  fireman's  association,  or  three  hundred  dollars  to  any 
district  association  in  any  year. 

(c)  If  this  appropriation  is  insufficient  to  pay  such  claims  in  full, 
the  same  shall  be  allowed  and  paid  pro  rata. 

(2)  (Repealed  by  Ch.  389,  1919). 

Sections  172 — 71,  172 — 118  and  1979m  are  consolidated  and  renumbered  to  he 
section  20.56. 

Fire  department  dues. 

(3)  Annually,  such  sums  as  may  accrue,  on  account  of  dues  to 
fire  departments,  by  virtue  of  sections  1926  and  1926m,  to  be  collected 
and  paid  over  to  the  cities,  villages  and  towns  entitled  thereto,  as  pro- 
vided in  said  sections. 

20.57  (9)  Any  fees  received  by  the  commission  for  transcripts 
furnished  pursuant  to  subsection  2  of  section  2394 — 14  shall  be  paid 
into  the  state  treasury  and  are  appropriated  to  the  commission  for 
reporter  and  stenographic  services. 

Appointment  of  subordinates;    fixing  titles  and  compensation, 

20.73  Except  as  expressly  provided  by  law,  the  (*names  of  other 
departments  omitted)  commissioner  of  insurance,  (*names  of  other 
departments  omitted)  are  each  authorized  to  appoint, — subject  to  the 
state  civil  service  law  in  cases  where  the  provisions  thereof  are  in- 
tended to  apply,  and  subject  to  the  approval  of  such  other  officer  or 
body  as  prescribed  by  law, — such  deputies,  assistants,  experts,  clerks, 
stenographers,  or  other  employes  as  shall  be  necessary  for  the  execu- 
tion of  their  functions,  and  to  designate  the  titles,  prescribe  the  duties, 
and  fix  the  compensation  of  such  subordinates. 

*For  the  sake  of  brevity,  these  names  are  omitted. 

Traveling  expenses. 
(2)     The  chief  officers  enumerated  in  subsection  (1),  and  their  ap- 
pointees and  employes,  shall  each  be  reimbursed  for  actual  and  neces- 
sary traveling  expenses  incurred  in  the  discharge  of  their  duties.    The 


72.15  8  Ch.  72 

oflBcers  and  employes  of  any  department,  board  or  commission,  shall, 
when  lor  reasons  of  economy  or  efficiency  they  are  stationed  at  any 
other  place  than  the  official  location  of  such  department,  board  or  com- 
mission, receive  their  actual  and  necessary  traveling  and  other  ex- 
penses when  called  to  such  official  location  for  temporary  service.  The 
members  of  boards,  departments  and  commissions  who  are  entitled  to 
expenses  but  not  compensation,  the  members  of  boards,  departments 
and  commissions  who  are  entitled  to  a  per  diem  for  time  actually 
spent  in  state  service,  and  the  members  of  boards,  departments  and 
commissions  who  receive  an  honorarium,  shall  be  entitled  to  travel 
and  other  expenses  while  attending  meetings  of  such  board,  depart- 
ment or  commission  held  at  the  city  of  Madison;  provided  that  no  such 
traveling  or  other  expenses  shall  be  allowed  to  any  such  member  of 
any  department,  board  or  commission  who  actually  resides  in  the  city 
of  Madison  while  attending  any  such  meeting  at  said  city. 

CHAPTER  58— PRIVATE   ASYLUMS,   HOSPITALS  AND   SOCIETIES 

Private  tuberculosis  sanatoriums. 

58.06  Any  fraternal  or  mutual  benefit  society  organized  for  the  sole 
purpose  of  providing  disability  benefits  in  cases  of  tuberculosis  may 
purchase  or  lease  the  necessary  lands  and  buildings  for  the  operation 
of  a  tuberculosis  sanitorium  or  sanitoria  for  the  benefit  of  its  members. 
Whenever  the  sanatorium  fac.lities  are  not  all  needed  for  the  treat- 
ment of  members,  nonmembers  of  the  society  may  be  admitted  to  any 
such  sanatorium  upon  payment  of  at  least  the  cost  of  maintenance  and 
iieatment,  which  payments  shall  be  placed  in  the  funds  of  the  society. 

Formerly  part  of  section  1957  (10). 

TAXATION 

CHAPTER  63ee— PROPERTY  TAX 

Personal  property  of  insurance  companies  exempt. 
Section  1038.     The  property  in  this  section  described  is  exempt  from 
taxation,  to  wit: 
*     *     * 

(13)  All  the  personal  property  of  all  insurance  companies  that  now 
are  or  shall  be  organized  or  doing  business  in  this  state. 

CHAPTER  72— INHERITANCE  TAX 

Commissioner  to  value  future  estates. 
Section  72.15.  4.  The  commissioner  of  insurance  shall,  on  applica- 
tion of  any  county  court  or  of  the  tax  commission  determine  the  value 
of  any  such  future  or  contingent  estates,  income,  or  interests  therein, 
limited,  contingent,  dependent,  or  determinable  upon  the  life  or  lives 
of  the  person  or  persons  in  being  upon  the  facts  contained  in  such 
special  appraiser's  report  or  upon  facts  contained  in  the  county  court's 


Ch.  76  9  •  76.30 

finding  and  determination  and  certify  the  same  to  the  county  court, 
and  his  certificate  shall  be  presumptive  evidence  that  the  method  of 
computation  adopted  therein  is  correct. 

5.  Whenever  a  transfer  of  property  is  made  upon  which  there  is,  or 
in  any  contingency  there  may  be,  a  tax  imposed,  such  property  shall 
be  appraised  at  its  clear  market  value  immediately  upon  the  transfer 
or  as  soon  thereafter  as  practicable.  The  value  of  every  future  or  lim- 
ited estate,  income,  interest,  or  annuity  dependent  upon  any  life  or 
lives  in  being,  shall  be  determined  by  the  rule,  method,  and  standard 
of  mortality  and  value  employed  by  the  commissioner  of  insurance  in 
ascertaining  the  value  of  policies  of  life  insurance  and  annuities  for 
the  determination  of  liabilities  of  life  insurance  companies,  except  that 
the  rate  of  interest  for  making  such  computation  shall  be  five  per  cent 
per  annum.  The  tax  so  determined  shall  be  construed  to  be  upon  the 
transfer  of  a  proportion  of  the  principal  or  corpus  of  the  estate  equal 
to  the  present  value  of  such  future  or  limited  estate,  income,  interest, 
or  annuity,  and  not  upon  any  earnings  or  income  of  said  property  pro- 
duced after  death,  and  such  earnings  or  income  shall  not  be  exempt 
from  the  income  tax.     Such  tax  shall  be  due  and  payable  forthwith. 

FonnerJy  section  iOS7 — 15. 

CHAPTER   76— TAXATION   OF   INSURANCE   COMPANIES 

Fire  and  marine  companies;  license  fees. 
Section  76.30.  (1)  Every  company  transacting  the  business  of  in- 
surance against  fire  or  by  the  risk  of  inland  navigation  or  transporta- 
tion, other  than  companies  excepted  under  subsection  (2)  hereof,  shall 
pay  to  the  state  on  or  before  the  thirty-first  day  of  January  in  each  year, 
a  tax  of  two  and  three-eighths  per  centum  on  the  amount  of  the  gross 
premiums  received  for  direct  insurance,  less  return  premiums  and 
cancellations  on  direct  insurance,  by  such  company  during  the  pre- 
ceding year,  in  this  state.  Direct  insurance  shall  include  all  insurance 
other  than  reinsurance.  In  case  any  company  shall  discontinue  busi- 
ness in  this  state  and  reinsure  the  whole  or  a  part  of  its  risks  without 
making  payment  of  this  tax,  the  company  accepting  such  reinsurance 
shall  pay  the  tax;  and  if  several  companies  shall  make  such  reinsurance 
the  tax  shall  be  apportioned  between  such  companies  in  proportion  to 
the  original  premiums  upon  the  business,  in  this  state,  so  reinsured 
by  each  such  company.  Upon  the  payment  of  the  tax  herein  provided, 
such  company  may  be  licensed  to  transact  its  business  until  the  last 
day  of  January  in  the  ensuing  year,  unless  sooner  revoked  or  forfeited 
according  to  law. 

Domestic  mutuals  exempt. 

(2)  Excepting  domestic  mutual  insurance  companies  included  in 
section  76.34  and  companies  heretofore  organized  under  sections  1896 
to  1900,  inclusive,  no  domestic  mutual  insurance  company  shall  be 
required  to  pay  any  taxes,  fees,  or  charges  to  the  state. 

Formerly  section  1211 — 31. 


76.35  10  Ch.  76 

License  fees;  calculation  of. 
Section  76.31.  All  license  fees  and  taxes  levied  under  any  provi- 
sion of  law  upon  gross  premiums  against  any  insurance  company  or 
other  insurer  shall  be  uniformly  calculated  on  the  amount  of  gross  pre- 
miums received  for  direct  insurance  less  return  premiums  and  cancel- 
lations and  returns  from  savings  and  gains  on  direct  insurance  by  such 
company  or  other  insurer  during  the  preceding  year  in  this  state. 

Formerly   section  1211 — 32. 

Casualty  companies;    license  fee. 

Sectio.x  76.32.  Every  corporation  transacting  the  business  of  cas- 
ualty or  suretyship  insurance  shall  pay  to  the  state  on  or  before  the 
first  day  of  March  in  each  year,  as  a  license  fee  for  transacting  such 
business,  two  per  centum  upon  the  gross  premiums  received  during  the 
preceding  year  on  all  policies  or  contracts  which  have  been  written  on 
the  lives  of  residents  or  property  in  this  state. 

Formerly  section  1211 — -.W. 

Taxation  of  unauthorized  fire   and   marine  companies;     report   by 
insured. 

Section  76.34.  Any  company  not  authorized  to  do  business  in  this 
state,  which  shall  insure  any  property  situated  in  this  state  against 
fire  or  the  risk  of  inland  navigation  or  transportation  shall  pay  to  this 
state  a  tax  upon  the  gross  premiums  paid  to  such  company  on  such  in- 
surance computed  at  the  rate  per  centum  prescribed  by  section  76.30, 
and  on  default  of  any  such  company  in  the  payment  of  such  tax  before 
the  first  day  of  March  next  succeeding,  the  owner  of  such  property 
shall  pay  such  tax.  Every  person  paying  more  than  one  hundred  dol- 
lars premiums  to  any  one  such  company  in  any  year  shall  report  the 
same  in  writing  by  mail  to  the  commissioner  of  insurance  before  the 
first  day  of  March  next  succeeding,  and  if  such  report  be  not  made 
and  such  tax  remains  unpaid  for  sixty  days  after  the  said  first  day  of 
March,  the  tax  shall  be  increased  by  one-tenth  for  every  month  during 
which  such  tax  remains  unpaid  after  the  expiration  of  .said  sixty  days. 

Formerly  section  1211 — 3/t. 

Taxation  of  life  companies. 
Section  76.35.  Every  company,  corporation  or  association  trans- 
acting the  business  of  life  insurance  within  this  state,  excepting  only 
such  fraternal  societies  as  have  lodge  organizations  and  insure  the 
lives  of  their  own  members,  and  no  others,  shall,  on  or  before  the  first 
day  of  March,  in  each  year,  pay  into  the  state  treasury  as  an  annual 
license  fee  for  transacting  such  business  the  amounts  following: 

Domestic  companies. 
(1)  If  such  company,  corporation  or  association  is  organized  under 
the  laws  of  this  state,  three  per  centum  of  its  gross  income  from  all 
sources  for  the  year  ending  December  thirty-first,  next  prior  to  said 
first  day  of  March,  exceptng  therefrom  Income  from  rents  of  real  estate 
upon  wlfich  said  company,  corporation  or  association  has  paid  the 
taxes  assessed  thereon,  and  excepting  also  premiums  collected  on  pol- 
icies of  insurance  and  contracts  for  annuitie.s. 


Ch.76  11  76. 3U 

Foreign  companies. 

(2)  If  any  such  company,  corporation  or  association  Is  organized 
without  the  state  of  Wisconsin,  and  is  not  purely  an  assessment  com- 
pany, it  shall  pay  into  the  state  treasury,  as  such  annual  license  fee, 
the  sum  of  three  hundred  dollars,  except  that  whenever  the  similar 
taxes  and  fees  imposed  upon  a  company  of  another  state  under  section 
76.35,  shall  exceed  three  hundred  dollars,  the  amount  of  the  annual 
license  fee  shall  be  deducted. 

License  year;    tax  on  real  estate. 

(3)  Such  license,  when  granted  shall  authorize  the  company,  cor- 
poration or  association  to  whom  it  is  issued  to  transact  business  until 
the  first  day  of  March  of  the  ensuing  year,  unless  sooner  revoked  or 
forfeited.  The  payment  of  such  license  fee  shall  be  in  lieu  of  all  taxes 
for  any  purpose  authorized  by  the  laws  of  this  state,  except  taxes 
on  such  real  estate  as  may  be  owned  by  such  company,  corporation  or 
association. 

Formerly  1211 — S5. 

Retaliatory  law;    life,  fire,  accident,  and  marine  companies. 

Section  76.35.  Whenever  the  laws  of  any  other  state  of  the  United 
States  or  of  any  foreign  country,  or  the  rules,  regulations,  requirements 
or  impositions  thereof,  or  of  any  department  or  officer  thereof  shall 
require  of  insurance  companies  or  fraternal  benefit  societies  organized 
under  the  laws  of  this  state  and  doing  business  in  such  state  or  foreign 
country  or  of  their  agents,  any  deposit  of  securities  for  the  protection 
of  their  policyholders  or  otherwise,  or  any  payment  of  taxes,  fines, 
penalties,  certificates  of  authority,  license  fees  or  otherwise,  greater 
than  the  amount  required  by  the  laws  of  this  state  for  the  same  pur- 
poses from  similar  companies  or  fraternal  societies  organized  under 
the  laws  of  such  other  state  or  foreign  country  and  doing  business  in 
this  state,  or  shall  impose  other  obligations,  prohibitions  or  restrictions 
additional  to  or  in  excess  of  those  imposed  by  the  laws  of  this  state 
upon  insurance  companies  or  fraternal  benefit  societies  of  such  other 
state  or  foreign  country  or  their  agents,  then  all  such  companies  or 
fraternal  benefit  societies  of  such  other  states  or  foreign  country  doing 
business  within  this  state  shall  make  the  same  deposit  with  the  state 
treasurer  and  shall  pay  him  the  same  sum  for  taxes,  fines,  penalties, 
certificates  of  authority,  license  fees  or  otherwise,  and  the  same  obli- 
gations, prohibitions  or  restrictions  of  whatever  kind  shall  be  im- 
posed upon  them  and  their  agents  as  a  condition  to  the  issuance  of  a 
license  to  them,  as  is  required  to  be  made  or  is  imposed  upon  com- 
panies or  societies  of  this  state  or  their  agents  by  the  laws  of  such 
other  state  or  foreign  country,  or  the  rules,  regulations,  requirements 
or  impositions  thereof,  or  of  any  department  or  officer  thereof. 

Formerly  1211 — 36. 

Reciprocal  provisions. 

Section  76.36.  When  any  insurance  corporation  or  other  insurer  of 
this  state  shall  be  licensed  to  transact  insurance  in  any  other  state, 
territory,  or  district  of  the  United  States,  like  insurance  corporations 


n48  12  Ch.  85 

or  insurers  from  such  other  state,  territory  or  district  shall  pay  no 
other  or  greater  taxes,  fees,  or  licenses  than  are  or  would  lawfully  be 
imposed  upon  and  collected  from  like  insurance  corporations  or  insurers 
of  this  state  by  such  other  "state,  territory  or  district;  but  the  amount 
of  such  taxes  or  fees  paid  by  insurance  corporations  or  insurers  sub- 
ject to  sections  76.34,  1926,  *■  "^  *  and  1972,  shall  not  be  less  than  the 
amount  required  and  applied  as  provided  in  said  sections,  and  the 
amount  of  such  taxes  paid  by  insurance  corporations  or  insurers  under 
the  provisions  of  subsection  (1)  of  section  76.30  sJiall  not  be  less  than 
three-eights  of  one  per  centum  on  the  amount  of  the  gross  premiums 
received  for  direct  insurance,  less  the  deductions  provided  in  section 
70.31,  by  such  corporations  or  itisurers  during  the  preceding  year  in 
this  state.  This  section  shall  not  apply  to  insurance  corporations  or 
other  insurers  of  any  foreign  country. 
Formerly  1211 — ^57. 

License;    insurance;    collection  of  fees. 
Section  76.37.   1.  Every  license  issued  pursuant  to  sections  76.31  to 
76.35  shall  certify  that  payment  of  the  license  fee  has  been  made,  be 
attested  by  the  great  or  lesser  seal  thereto  affixed,  and  shall  be  in  such 
form  as  shall  be  approved  by  the  attorney-general. 

Actions  affecting  license  fees. 

2.  No  suit  shall  be  brought  to  restrain  or  enjoin  the  collection  of 
any  license  fee  imposed  or  provided  for  by  sections  76.30  to  76.37, 
inclusive.  Any  company,  corporation,  or  association,  aggrieved  by 
the  payment  of  any  such  license  fee,  may  maintain  a  suit  against  the 
state  for  the  recovery  thereof  in  the  circuit  court  for  Dane  county 
within  six  months  from  the  time  of  the  payment  thereof.  The  state 
may  be  served  with  a  summons  in  such  suit  by  delivering  a  copy  to 
the  attorney-general  or  leaving  it  at  his  office  in  the  capitol  with  one 
of  his  assistants. 

3.  No  action  shall  be  commenced  to  compel  the  issuance  of  the  li- 
cense provided  for  by  subsection  5  of  section  1947  until  the  fee  Imposed 
by  sections  76.30  to  76.37,  inclusive,  shall  have  been  fully  paid. 

4.  It  shall  be  the  duty  of  the  attorney-general  to  institute  suit  in 
the  circuit  court  for  Dane  county  to  recover  any  such  license  fees  not 
paid  within  the  time  prescribed  by  sections  76.31  to  76.38,  inclusive. 
Nothing  in  this  act  shall  be  construed  as  amending  or  modifying  in  any 
respect  the  provisions  of  chapter  139*  of  the  statutes. 

Formerly  1211 — .W. 

'Chapter  l.VJ  treats  of  actioyis  against  the  state. 

CORPORATIONS 
CHAPTER  85— GENERAL   PROVISIONS 

Section  1748.  Every  corporation  organized  under  any  general  or 
special  law,  when  no  other  provision  is  specially  made  by  law  or  by  its 
articles  of  organization,  shall  have  the  following  powers: 


Ch.  S5  13  1761 

Corporations  may  have  officers  insured. 
(8)  To  cause  to  be  insured  for  its  benefit  the  life  of  any  director, 
officer  or  agent  thereof  and  to  pay  premiums  therefor.  Whenever  any 
such  director,  officer  or  agent  shall  cease  to  be  a  director,  officer  or 
agent,  such  corporation  shall  cease  to  pay  such  premiums  unless  agreed 
to  by  a  vote  of  stockholders  holding  at  least  eighty  per  cent  of  the 
shares  of  stock  of  such  corporation. 

Quorum  of  directors  and  members. 
Section  1749.  A  majority  of  the  directors  or  trustees  of  every  cor- 
poration convened  according  to  the  by-laws  thereof,  shall  constitute  a 
quorum  for  the  transaction  of  business.  The  members  owning  a 
majority  of  the  stock  in  stock  corporations  and  a  majority  of  the  mem- 
bers of  other  corporations  shall  constitute  a  quorum  at  any  meeting 
of  such  stockholders  or  members  and  be  capable  of  transacting  any 
business  thereof  except  when  otherwise  specifically  provided  by  law  or 
by  the  articles  of  organization  of  the  corporation. 

Other  laws  relating  to  corporations. 

For  other  laws  relating  to  the  organization,  management 
and  dissolution  of  corporations,  see  compilation  issued  by  the 
secretary  of  state  relating  to  corporations  generally. 

Stockholders,  votes  and  proxies. 
Section  1760.  Unless  a  provision  to  the  contrary  is  inserted  in  the 
articles  of  incorporation  and  recited  in  each  certificate  for  any  share 
of  stock  issued  by  the  corporation,  every  stockholder  of  any  corpora- 
tion shall  be  entitled  to  one  vote  for  each  share  of  stock  held  and 
owned  by  him  at  every  meeting  of  the  stockholders  and  at  every  elec- 
tion of  the  officers  thereof,  and  may  vote  either  in  person  or  by  proxy 
at  such  elections,  and  by  proxy  at  other  meetings  when  so  provided 
by  the  by-laws  of  the  corporation;  and  every  executor,  administrator, 
guardian,  assignee  for  creditors,  receiver  or  trustee  shall  represent 
the  shares  of  stock  in  his  hands  at  all  meetings  of  the  stockholders  and 
may  vote  thereat  as  a  stockholder. 

Proxies,  existing  invalidated. 

Section  1760m.  No  proxy  heretofore  made  or  given  by  any  policy- 
holder, officer,  director  or  trustee  of  any  mutual  life  insurance  corpora- 
tion organized  and  existing  under  the  laws  of  this  state  shall  be  exer- 
cised or  used  for  voting  upon  any  question  whatsoever,  and  any  votes 
given  or  attempted  to  be  given  by  any  such  proxy  shall  be  absolutely 
void;  anything  in  the  charter,  certificate,  articles  of  incorporation,  con- 
stitution or  by-laws  of  any  such  corporation  to  the  contrary  notwith- 
standing. 

Irregular  meeting. 

Section  1761.  When  all  the  members  of  any  corporation  shall  be 
present  at  any  meeting,  however  notified,  and  shall  sign  a  written  con- 
sent to  the  holding  of  such  meeting  oii  the  records  thereof,  they  may 


J770b  14  Ch.  85 

transact  any  business  at  such  meeting  which  could  lawfully  be  trans- 
acted at  any  meeting  of  the  members  of  such  corporation  regularly 
called  and  notified. 

Dissolution;  insolvency;  suspension  for  one  year. 
Sectiox  1763.  Whenever  any  corporation  shall  have  remained  in- 
solvent, or  shall  have  neglected  or  refused  to  pay  and  discharge  its 
notes  or  other  evidences  of  debt,  or  shall  have  suspended  its  ordinary 
and  lawful  business  for  one  whole  year,  it  shall  be  deemed  to  have 
surrendered  the  rights,  privileges  and  franchises  granted  or  acquired 
under  any  law  and  shall  be  adjudged  to  be  dissolved. 

Continuation  after  dissolution. 
Sectiox  1764.  All  corporations  whose  term  of  existence  shall  expire 
by  their  own  limitation,  or  which  shall  be  voluntarily  dissolved  in  the 
manner  provided  by  law  or  by  its  articles  of  association,  or  shall  be 
annulled  by  forfeiture  or  otherwise,  shall  nevertheless  continue  to  be 
bodies  corporate  for  three  years  thereafter  for  the  purpose  of  prose- 
cuting and  defending  actions  and  of  enabling  them  to  settle  and  close 
up  their  business,  dispose  of  and  convey  their  property  and  divide  their 
capital  stock,  and  for  no  other  purpose;  and  when  any  corporation 
shall  become  so  dissolved  the  directors  or  managers  of  the  affairs  of 
such  corporation  at  the  time  of  its  dissolution,  by  whatever  name  they 
may  be  known,  shall,  subject  to  the  power  of  any  court  of  competent 
jurisdiction  to  make,  in  any  case,  a  different  provision,  continue  to  act 
as  such  during  said  term  and  shall  be  deemed  the  legal  administrators 
of  such  corporation  with  full  power  to  settle  its  affairs,  sell  or  dispose 
of  and  convey  all  its  property,  both  real  and  personal,  collect  the  out- 
standing debts,  and  after  paying  the  debts  due  and  owing  by  such 
corporation  at  the  time  of  its  dissolution  and  the  costs  of  such  admin- 
istration divide  the  residue  of  the  money  and  other  property  among  the 
stockholders  or  members  thereof. 

Actions. 

Section  1770.  Every  corporation  may  maintain  an  action  against 
any  of  its  members  or  stockholders  for  any  cause  relating  to  the  busi- 
ness of  the  corporation  the  same  as  against  any  other  person;  and  like 
actions  may  be  maintained  by  any  member  or  stockholder  against  such 
corporation  for  any  cause  of  action  in  his  favor  against  the  same. 


FOREIGN  CORPORATIONS 

Filing  articles,  amendments. 
Section  1770b.  2.  No  corporation,  incorporated  or  organized  other- 
wise than  under  the  laws  of  this  state,  except  railroad  corporations, 
corporations  or  associations  created  solely  for  religious  or  charitable 
purposes,  insurance  companies  and  fraternal  or  beneficiary  corpora- 
tions, societies,  orders  and  associations  furnishing  life  or  casualty  in- 
surance or  indemnity  upon  the  mutual  or  assessment  plan,  or  corpora- 


Ch.  85  15  •  1770 j 

tions  not  organized  or  conducted  for  profit,  shall  transact  business  or 
acquire,  hold,  or  dispose  of  property  in  this  state  until  such  corpora- 
tion shall  have  caused  to  be  filed  in  the  office  of  the  secretary  of  state 
a  copy  of  its  charter,  articles  of  association  or  incorporation  and  all 
amendments  thereto  duly  certified  by  the  secretary  of  state  of  the  state 
wherein  the  corporation  was  organized.  In  case  the  laws  of  the  state 
wherein  the  corporation  was  organized  do  not  require  that  the  charter, 
articles  of  association  or  incorporation  be  filed  in  the  oflfice  of  the  secre- 
tary of  state,  then  said  charter,  articles  of  association  or  incorporation 
shall  be  certified  to  by  the  register  of  deeds  or  other  officer  with  whom 
said  articles  of  association  or  incorporation  were  filed,  with  a  certificate 
of  the  secretary  of  state  attached,  certifying  that  said  officer  is  the 
proper  officer  to  certify  to  said  articles  of  association  or  incorporation. 
Any  foreign  corporation,  including  any  bank  or  trust  company,  may,  in 
its  corporate  name,  and  without  being  licensed  to  do  business  in  this 
state,  advance  and  loan  money  therein,  and  take,  acquire,  hold  and 
enforce  notes,  bonds,  mortgages  or  trust  deeds  given  to  represent  or 
secure  money  so  loaned  or  advanced  or  for  other  lawful  consideration, 
and  all  such  notes,  bonds,  mortgages  or  trust  deeds  which  heretofore 
have  been  or  shall  hereafter  be  taken,  acquired  or  held  by  any  such 
foreign  corporation  shall  be  as  valid  and  enforceable  as  though  it 
were  an  individual,  and  such  right  of  enforcement  shall  include  the 
right  to  acquire  the  mortgaged  property  upon  foreclosure,  or  in  virtue 
of  the  provisions  of  the  mortgage  or  trust  deed,  and  to  dispose  of  the 
same;  provided,  however,  that  any  such  corporation  which  shall  here- 
after transact  in  this  state  the  business  above  provided  for  shall  first 
file  with  the  secretary  of  staffe  a  statement  in  writing  by  its  president, 
secretary,  treasurer  or  general  manager  that  it  constitutes  the  secre- 
tary of  state  its  attorney  for  the  service  of  process  as  provided  in  para- 
graph (f)  of  subsection  3  of  this  section;  and  provided,  further,  that 
except  as  regards  the  advancing  and  loaning  of  money  and  the  taking, 
acquiring,  holding  and  enforcing  of  securities  as  above  provided,  noth- 
ing herein  contained  shall  be  construed  as  authorizing  any  foreign 
corporation  to  transact  in  this  state  the  business  of  a  bank  or  trust 
company,  or  otherwise  to  exempt  any  foreign  corporation  (other  than 
the  railroad,  religious,  charitable,  and  insurance  corporations  and 
corporations  not  organized  or  conducted  for  profit  above  specified) 
from  the  provisions  of  this  section  or  other  statutes  of  this  state. 
Nothing  in  this  section  contained  shall  affect  the  rights  of  parties  in 
any  action  which  may  now  be  pending. 

Sectiiin  177(lh  is  referred  to  in  1772  (2). 

Section  1770j.  1.  Any  corporation  organized  otherwise  than  under 
the  laws  of  this  state,  having  acquired,  or  attempted  to  acquire,  legal 
title  by  deed,  or  lease  to  any  real  property  in  this  state,  before  com- 
plying with  the  terms  of  section  1770b  of  the  statutes,  and  which  is 
now  not  required  to  comply  with  said  section  or  which  has  thereafter, 
and  before  the  passage  of  this  section,  complied  with  said  section, 
shall  be  and  is  hereby  relieved  from  any  disability  provided  in  said 


1772  16  C7i.  66 

statute  or  prohibition  therein  contained,  so  far  as  said  section  relates 
to  the  acquisition  and  holding  of  the  property  so  acquired,  or  attempted 
to  be  acquired,  and  the  title  so  acquired,  or  attempted  to  be  acquired, 
is  hereby  confirmed. 


CHAPTER  86— ORGANIZATION,   POWERS,   DISSOLUTION 

Oomestic  corporations,  articles  to  be  filed  and  recorded. 

Section  1772.  In  order  to  form  such  a  corporation  the  persons  de- 
siring so  to  do  shall  make,  sign  and  acknowledge  written  articles  con- 
taining: 

(1)  A  declaration  that  they  associate  for  the  purpose  of  forming  a 
corporation  under  these  statutes,  and  of  the  business  or  purposes 
thereof. 

(2)  The  name  of  such  corporation:  But  such  name  shall  not  con- 
tain the  names  of  individuals  in  the  manner  in  which  they  are  or- 
dinarily used  in  partnership  or  business  names,  and  shall  be  such  as 
to  distinguish  it  from  any  other  corporation  organized  under  the 
laws  of  this  state  and  from  any  corporation  licensed  to  transact  busi- 
ness In  this  state.  In  case  of  the  reorganization  of  a  corporation  the 
name  of  the  old  corporation  may  be  used.  No  corporate  name  shall 
be  held  illegal  because  of  the  omission  of  the  woi'd  "limited."  The  lo- 
cation of  such  corporation  in  some  city,  village  or  town  in  the  state. 

(3)  The  capital  stock,  if  any,  the  number  of  shares  and  the  amount 
of  each  share. 

(4)  The  designation  of  general  officers  and  the  number  of  directors, 
which  shall  not  be  less  than  three;  and  the  directors  may  be  required 
to  be  classified  into  three  classes  so  that  one-third  shall  hold  their, 
offices  for  one  year,  one-third  for  two  and  one-third  for  three  years; 
in  which  case  all  directors  elected  subsequent  to  the  first  shall  hold 
their  offices  for  three  years  except  when  elected  or  appointed  to  fill 
vacancies. 

(5)  The  principal  duties  of  the  several  general  officers  respectively. 

(6)  The  method  and  conditions  upon  which  members  shall  be  ac- 
cepted, discharged  or  expelled;  and,  in  stock  corporations,  persons 
holding  stock,  according  to  the  regulations  of  the  corporation,  and  they 
only,  shall  be  members. 

(7)  Such  other  provisions  or  articles,  if  any,  not  inconsistent  with 
law,  as  they  may  deem  proper  to  be  therein  inserted  for  the  interests 
of  such  corporation  or  the  accomplishment  of  the  purposes  thereof, 
including,  if  desired,  the  duration  of  its  existence.  In  case  the  cor- 
poration is  formed  without  capital  stock,  the  articles  shall  fix  the  time 
and  place  for  the  first  meeting  for  the  election  of  officers,  and  the 
signers  of  such  articles  shall  give  notice  thereof  to  the  members  In  the 
manner  provided  in  the  next  section.  Such  original  articles  or  a  true 
copy  thereof,  verified  as  such  by  the  affidavits  of  two  of  the  signers 
thereof,  shall  be  filed  with  the  secretary  of  state.  A  like  verified  copy 
and  certificate  of  the  secretary  of  state,  showing  the  date  when  such 


Ch.  86  17  i'^73 

articles  were  filed  and  accepted  by  the  secretary  of  state,  within  thirty 
days  of  such  filing  and  acceptance,  shall  be  recorded  by  the  register  of 
deeds  of  the  county  in  which  such  corporation  is  located,  and  no  cor- 
poration shall,  until  such  articles  be  left  for  record,  have  legal  existence. 
The  register  of  deeds  shall  forthwith  transmit  to  the  secretary  of  state 
a  certificate  stating  the  time  when  such  copy  was  recorded  and  shall  be 
entitled  to  a  fee  of  twenty-five  cents  therefor  to  be  paid  by  the  person 
presenting  such  papers  for  record.  Upon  the  receipt  of  such  certifi- 
cate the  secretary  of  state  shall  issue  a  certificate  of  incorporation. 

(9)  (a)  No  fee  for  filing  its  articles  of  incorporation  or  amendments 
thereto  is  required  to  be  paid  by  any  corporation  organized  without 
capital  stock  or  exclusively  for  educational,  benevolent,  charitable,  or 
reformatory  purposes,  the  articles  of  which  provide  that  no  dividend 
or  pencuniary  profits  shall  be  declared  or  paid  to  the  members  thereof, 
nor  by  a  housing  corporation  formed  under  the  provisions  of  section 
1771b,  but  fees  for  filings  are  required  to  be  paid  to  the  secretary  of 
state  as  follows: 

(b)  By  corporations  organized  for  the  manufacture  of  beet  sugar, 
butter,  cheese,  or  other  dairy  products  or  for  the  business  of  preparing 
for  market,  storing,  and  selling  products  of  the  farms  of  members  of 
such  corporations,  ten  dollars  for  the  articles  and  five  dollars  for  each 
subsequent  amendment  thereof. 

(c)  By  every  other  corporation,  except  as  is  otherwise  provided  in 
these  statutes,  twenty-five  dollars  for  the  articles  and  ten  dollars  for 
each  subsequent  amendment  thereof,  together  with  a  further  fee  of 
one  dollar  for  each  one  thousand  dollars  of  its  authorized  capital  stock 
in  excess  of  twenty-five  thousand  dollars. 

Temporary  control;    liability  of  promoters;    abandonment. 

Section  1773.  Until  the  directors  or  trustees  shall  be  elected  the 
signers  of  the  articles  of  organization  shall  have  direction  of  the 
affairs  of  the  corporation  and  make  such  rules  as  may  be  necessary 
for  perfecting  its  organization,  accepting  members  or  regulating  the 
subscription  of  the  capital  stock.  In  stock  corporations  the  first  meet- 
ing may  be  held  at  any  time  after  one-half  the  capital  stock  shall 
have  been  subscribed;  and  may  be  called  by  any  two  signers  of  the 
articles,  at  such  time  and  place  as  they  shall  appoint,  by  giving  ten 
days'  personal  notice  thereof  in  writing  to  each  subscriber  of  stock  or 
by  publishing  notice  thereof  for  at  least  two  weeks  before  such  meet- 
ing in  some  newspaper  published  at  or  nearest  to  the  designated  place 
of  location  of  the  corporation;  or  such  meeting  may  be  held  without 
previous  notice  if  all  the  subscribers  for  stock  be  present  in  person 
or  by  duly  authorized  attorney.  No  such  corporation  shall  transact 
business  with  any  others  than  its  members  until  at  least  one-half  of 
it.s  capital  stock  shall  have  been  duly  subscribed  and  at  least  twenty 
per  centum  of  its  said  capital  stock  actually  paid  in;  and  if  any  obli- 
gation shall  be  contracted  in  violation  hereof,  the  corporation  offending 
shall  have  no  right  of  action  thereon;   but  the  signer  or  signers  of 


1774  18  Ch.  86 

the  articles  and  the  subscriber  or  subscribers  for  stock  transacting 
such  business  or  authorizing  the  same,  or  having  knowledge  thereof, 
consenting  to  the  incurring  of  any  debt  or  liability,  as  well  as  the 
stockholders  then  existing,  shall  be  personally  liable  upon  the  same. 
The  signers  of  the  articles  of  organization  may  abandon  the  organiza- 
tion and  revoke  the  articles  or  amend  the  same  at  any  time  before 
fifty  per  centum  of  the  stock  has  been  subscribed  and  twenty  per 
centum  of  its  capital  stock  paid  in  by  signing  and  acknowledging 
duplicate,  written  agreements  revoking  or  amending  the  original 
articles  of  organization  and  forwarding  same  to  the  secretary  of  state, 
one  agreement  to  be  filed  by  him  and  the  other  agreement  to  be  re- 
turned with  certificate  of  the  secretary  of  state  attached  showing  the 
date  when  such  agreement  was  filed  and  accepted  by  the  secretary  of 
state,  to  be  recorded  by  the  register  of  deeds  of  the  county  in  which 
such  corporation  is  located;  and  the  register  of  deeds  shall  note  on 
the  margin  of  the  record  of  the  articles  of  incorporation,  the  volume 
and  page  where  such  agreement  is  recorded.  The  register  of  deeds 
shall  forthwith  transmit  to  the  secretary  of  state  a  certificate  stating 
the  time  when  such  agreement  was  recorded  and  shall  be  entitled  to 
a  fee  of  twenty-five  cents  therefor  to  be  paid  by  the  person  presenting 
such  agreement  for  record,  provided,  that  the  abandonment  of  the 
organization  or  the  revocation  or  amendment  of  articles  in  pursuance 
hereof  shall  not  relieve  such  corporation  or  any  signer  or  subscriber 
for  stock  or  any  stockholder  then  existing  from  any  liability  hereby 
created.  Any  subscriber  may  be  released  from  7iis  subscription  upon 
application  within  ten  days  after  notice  of  an  amendm^ent  of  the 
articles  as  herein  provided. 

Amending  articles;    filing  and  record;    change  of  name. 

Section  1774.  Any  corporation  organized  under  this  chapter,  may 
at  any  meeting  of  its  members  by  a  vote  of  at  least  the  owners  of  two- 
thirds  of  all  the  stock  then  outstanding,  in  case  of  stock  corporations, 
or  at  least  one-half  of  the  members  of  the  corporation  without  stock, 
unless  a  greater  vote  shall  be  required  in  its  articles,  amend  its  ar- 
ticles of  organization  so  as  to  modify  or  enlarge  its  business  or  pur- 
poses, change  its  name  or  location,  increase  or  diminish  its  capital 
stock,  change  its  officers  or  its  directors  or  provide  anything  which 
might  have  been  originally  provided  in  such  articles;  but  no  corpora- 
tion without  stock  shall  change  substantially  the  original  purposes  of 
its  organization.  Such  amendments  shall  be  adopted  only  in  accord- 
ance with  the  articles  of  organization,  if  a  mode  of  amending  the  same 
shall  have  been  therein  prescribed.  When  adopted,  duplicate  copies 
of  such  amendment,  with  a  certificate  thereto  affixed,  signed  by  the 
president  and  secretary,  or  if  none,  the  correspondent  officers,  and 
sealed  with  the  corporate  seal,  if  there  be  any,  stating  the  fact  and 
date  of  adoption  of  such  amendment,  and,  if  a  stock  corporation,  the 
total  number  of  shares  voting  in  favor  of  such  amendment,  and  if  a 
corporation  organized  without  capital  stock,  the  total  number  of  mem- 
bers and  the  total  vote  in   favor  of  such   amendment,  and   that   such 


Ch.  86  19  J77£? 

copy  is  a  true  copy  of  the  original,  shall  be  forwarded  to  the  secretary 
of  state,  one  copy  to  be  filed  by  him,  and  the  other  copy  to  be  returned 
with  certificate  of  the  secretary  of  state  attached,  showing  the  date 
when  such  amendment  was  filed  and  accepted  by  the  secretary  of 
state,  which  said  copy  shall  be  recorded  by  the  register  of  deeds  of  the 
county  in  which  such  corporation  is  located,  within  thirty  days  after 
filing  with  the  secretary  of  state,  and  in  case  of  failure  so  to  do,  such 
officers  shall  forfeit  twenty-five  dollars,  and  the  register  of  deeds  shall 
note  on  the  margin  of  the  record  of  the  original  articles,  the  volume 
and  page  where  such  amendment  is  recorded,  and  no  amendment  shall 
be  of  effect  until  so  recorded,  and  such  amendment  shall  be  void  until 
so  filed  and  recorded.  The  register  of  deeds  shall  forthwith  transmit 
to  the  secretary  of  state  a  certificate  stating  the  time  when  such 
amendment  was  recorded  and  shall  be  entitled  to  a  fee  of  twenty-five 
cents  therefor,  to  be  paid  by  the  person  presenting  such  amendment  for 
record.  Upon  receipt  of  such  certificate  the  secretary  of  state  shall 
issue  a  certificate  of  amendment.  Whenever  the  corporate  name  shall 
be  changed  the  secretary  shall  publish  a  notice  thereof  in  a  newspaper 
published  at  or  nearest  to  the  place  of  location  of  such  corporation  for 
three  weeks,  and  if  he  shall  fail  for  two  months  so  to  do  shall  forfeit 
twenty-five  dollars.  No  change  of  location  of  any  such  corporation, 
if  beyond  the  limits  of  the  county,  shall  be  valid  until  the  articles 
of  organization  and  all  amendments  shall  have  been  recorded  in  the 
office  of  the  register  of  deeds  of  the  county  to  which  the  same  shall 
be  changed. 

Section  177 i  is  referred  to   in  WOSni. 

Amendments  increasing  capital  stock;  personal  liability. 
Section  1774n.  No  amendment  to  the  articles  of  any  corporation, 
increasing  the  capital  stock,  shall  be  filed  unless  accompanied  by  the 
affidavit  of  the  president  and  secretary  that  at  least  one-half  of  the 
capital  stock,  including  the  proposed  increase,  has  been  duly  sub- 
scribed and  at  least  twenty  per  centum  thereof  actually  paid  in.  The 
aforesaid  officers  and  any  other  officer  or  stockholder  consenting  to 
the  incurring  of  any  debt  or  liability  by  such  corporation,  while 
having  knowledge'  .that  less  than  one-half  of  the  authorized  capital 
stock  has  been  subscribed  or  that  less  than  twenty  per  centum  thereof 
has  been  actually  paid  in,  shall  be  personally  liable  upon  the  same. 

Directors  to  manage. 
Section  1776.  The  stock,  property,  affairs  and  business  of  every 
such  stock  corporation  shall  be  under  the  care  of  and  be  managed  by 
a  board  of  directors  who  shall  be  chosen  annually  by  the  stockholders 
from  among  their  number,  at  such  time  and  place  as  shall  be  provided 
by  the  articles  of  organization  or  the  by-laws,  and  shall  hold  one  year 
and  until  their  respective  successors  are  chosen,  except  that  when 
classified  by  the  articles  of  organization  they  may  be  elected  and  hold 
accordingly.  The  directors  shall  choose  one  of  their  number  presi- 
dent and  such  other  officers  as  the  corporate  articles  and  by-laws  re- 


1895m  20  Ch.  89 

quire,  for  such  term  as  shall  be  prescribed  thereby;  and  may  fill  any 
vacancy  in  their  board,  happening  after  any  regular  annual  election, 
until  the  next  succeeding  election. 

Dissolution.  • 

Section  1789.  Any  corporation  organized  under  any  law  may,  when 
no  other  mode  is  specially  provided,  dissolve  by  the  adoption  of  a  writ- 
ten resolution  to  that  effect,  at  a  meeting  of  its  members  specially 
called  for  that  purpose,  by  a  vote  of  the  owners  of  at  least  two-thirds 
of  the  stock  in  the  case  of  stock  corporations  and  of  one-half  the  mem- 
bei's  in  other  corporations;  but  when  a  mode  or  process  of  dissolution 
shall  have  been  provided  in  the  articles  of  organization,  it  shall  be 
conducted  accordingly.  Duplicate  copies  of  such  resolution,  with  a 
certificate  thereto  affixed,  signed  by  the  president  and  secretary,  or,  if 
none,  the  correspondent  officers,  and  sealed  with  the  corporate  seal,  if 
there  be  any,  stating  the  fact  and  date  of  the  adoption  of  such  resolu- 
tion; that  such  is  a  true  copy  of  the  original,  the  whole  number  of 
shares  of  stock,  and  of  members  of  such  corporation,  and  the  number 
of  members  who,  or  of  the  shares  of  stock  whose  owners,  voted  for  its 
adoption,  shall  be  forwarded  to  the  secretary  of  state,  one  copy  to  be 
filed  by  the  secretary  of  state  and  the  other  copy  to  be  returned  with 
certificate  of  the  secretary  of  state  attached,  showing  the  date  when 
such  copy  was  filed  and  accepted  by  the  secretary  of  state,  which  said 
copy  shall  be  recorded  by  the  register  of  deeds  of  the  county  in  which 
such  corporation  is  located  within  thirty  days  after  filing  with  the 
secretary  of  state,  and  thereupon  such  corporation  shall  cease  to  exist 
except  for  the  winding  up  of  its  affairs.  And  the  register  of  deeds 
shall  note  on  the  margin  of  the  record  of  the  articles  of  incorporation, 
the  volume  and  page  where  such  resolution  is  recorded.  The  register 
of  deeds  shall  forthwith  transmit  to  the  secretary  of  state  a  certifi- 
cate stating  the  time  when  such  resolution  was  recorded  and  shall  be 
entitled  to  a  fee  of  twenty-five  cents  therefor,  to  be  paid  by  the  person 
presenting  such  resolution  for  record.  Whenever  the  articles  of  or- 
ganization shall  provide  a  term  to  the  duration  of  a  corporation  it  shall 
cease  to  exist  at  the  time  so  fixed  except  as  aforesaiji. 


CHAPTER   89— INSURANCE    CORPORATIONS 

Definitions. 

Section  1895m.  Unless  the  context  of  any  statutes  or  law  relating  to 
insurance  indicates  otherwise,  the  following  words  and  phrases  shall 
be  understood  in  the  sense  herein  set  forth  and  defined: 

(1)  "Company"  includes  all  corporations,  associations,  partnerships, 
or  individuals  engaged  as  principals  in  the  business  of  insurance,  ex- 
cept mutual  benefit  societies. 

(2)  "Mutual  benefit  society"  includes  all  fraternal  and  beneficiary 
corporations,  societies,  orders  or  associations  for  the  relief  of  mem- 
bers on  the  mutual  or  assessment  plan. 


Ch.  89  21  JS97' 

Insurance  companies;  who  may  organize. 
Section  1896.  Subject  to  the  conditions  and  in  the  manner  pre- 
scribed by  law,  a  corporation  may  be  organized  by  fifteen  or  more  resi- 
dents of  this  state  to  transact  the  business  of  insurance  and  the  ar- 
ticles thereof  may  be  amended,  in  the  manner  provided  in  chapter  86 
of  the  statutes,  except  that  such  articles  and  amendments  shall  be  filed 
in  the  office  of  the  commissioner  of  insurance  Instead  of  being  filed 
in  the  office  of  the  secretary  of  state,  and  shall  be  submitted  to  and 
approved  by  the  attorney-general  before  filing. 

Section  1S96  is  referred  to  in  nil — 31  (:i),  195S  (1),  1977. 

Amendment  of  articles  of  mutual  companies. 
Section  1896m.  1.  The  charter  of  any  mutual  insurance  company 
incorporated  under  special  act  and,  unless  otherwise  provided  therein, 
the  articles  of  organization  of  any  mutual  insurance  company  incor- 
porated under  general  law,  other  than  a  company  oi:ganized  under  sec- 
tion 1927,  may  be  amended  by  a  vote  of  three-fourths  of  the  members 
voting  at  a  regular  or  special  meeting  after  the  proposed  amendment . 
has  been  filed  with  the  secretary  of  the  company  and  with  the  commis- 
sioner of  insurance,  and  a  copy  thereof,  with  notice  of  the  time  and 
place  of  meeting,  has  been  mailed  to  each  member  at  least  thirty  days 
prior  to  such  meeting. 

2.  Unless  otherwise  provided  in  the  articles  or  by-laws,  ten  members 
present  at  any  meeting  shall  constitute  a  quorum. 

3.  The  action  of  any  such  company  heretofore  had  attempting  to 
amend  its  articles  of  organization  is  hereby  validated,  notwithstanding 
any  informality  or  insufficiency  in  the  notice,  time  of  meeting,  voting, 
or  in  any  other  respect,  or  in  the  certification  thereof;  provided  it 
shall  appear  by  the  certificate  of  the  president  and  secretary,  approved 
by  the  commissioner  of  insurance  under  this  section,  that  notice  of 
intention  to  amend  the  articles  was  given  to  the  members  not  less 
than  one  week  prior  to  the  meeting  held  for  action  thereon,  and  that 
at  such  meeting  or  adjourned  session  thereof  such  amendment  was 
duly  voted  upon  and  adopted  by  a  majority  of  the  votes  cast  upon  the 
question,  or  by  such  larger  number  of  votes  as  required  by  the  articles; 
and  provided  such  certificate  and  approval  shall  have  been  filed  and 
recorded  as  required  for  amendments  to  articles  of  organization. 

Purposes;    classificatTon. 

Section  1897.  An  insurance  corporation  may  be  formed  for  the  fol- 
lowing purposes:  (The  mention  of  several  subjects  or  risks  of  insur- 
ance in  any  subsection  indicates  that  any  one  or  more  or  all  may  be 
included.) 

(1)  Fire  Insurance.— Against  loss  or  damage  to  property  on  land,  by 
fire,  lightning,  hail,  tempest  or  explosion. 

(2)  Marine  Insurance.— Vessels,  freights,  goods,  moneys,  effects, 
and  money  loaned  on  bottomry  and  respondentia,  against  the  perils  of 
the  seas  and  other  perils  usually  insured  against  by  marine  insurance, 
including  the  risks  of  inland  transportation  and  navigation. 


lf<97a  22  Ch.  S9 

(3)  Life  Insurance. — Upon  the  lives  or  health  of  persons,  and  every 
assurance  pertaining  thereto,  and  to  grant,  purchase  or  dispose  of  an- 
nuities and  endowments. 

(4)  Disability  Insurance. — Against  bodily  injury  or  death  by  acci- 
dent, and  upon  the  health  of  persons. 

(5)  Liabtlity  Insurance. — Against  loss  or  damage  by  the  sickness, 
bodily  injury,  or  death  by  accident  of  any  person  and  against  loss  or 
damage  to  the  property  of  any  person  by  accident,  for  which  loss  or 
damage  the  insured  Is  liable. 

(6)  Steam  Boiler  Insurance. — Against  loss  or  damage  to  the  prop- 
erty of  the  insured  or  to  the  life,  person  or  property  of  another,  for 
which  the  insured  is  liable,  caused  by  the  explosion  of  steam  boilers, 
pipes,  engines,  motors  and  machinery  connected  therewith  or  operated 
thereby. 

(7)  Fidelity  Insurance. — Against  the  loss  from  the  defaults  of  per- 
sons in  positions  of  trust,  public  or  private,  and  to  guarantee  the  per- 
formance of  contracts  and  obligations  other  than  that  of  insurance. 

(8)  Title  Insurance. — To  examine  titles  to  real  and  personal  prop- 
erty, furnish  information  relative  thereto  and  insure  against  loss  or 
damage  by  reason  of  incumbrance  and  defects  in  titles  and  against  non- 
payment of  principal  and  interest  of  bonds  and  mortgages. 

(9)  Credit  Insurance. — Against  loss  from  the  failure  of  persons  in- 
debted to  the  assured  to  meet  their  liabilities,  including  the  insurance 
or  guarantee  of  depositors  or  deposits  in  banks  or  trust  companies. 

(10)  Burglary  Insurance. — Against  loss  or  damage  by  burglary  or 
theft,  or  both. 

(11)  Plate  Glass  Insurance. — Against  the  breakage  of  glass,  located 
or  in  transit. 

(12)  Sprinkler  Leakage  Insurance. — Against  loss  or  damage  by 
water  caused  by  the  breakage  or  leakage  of  sprinklers,  pumps,  water 
pipes  or  plumbing,  or  its  fixtures,  and  against  accidental  Injury  to  such 
sprinklers  and  other  apparatus. 

(13)  Elevator  Insurance. — Upon  elevators  and  vehicles,  and  to  in- 
spect the  same  and  issue  certificates  thereof. 

(14)  Live  Stock  Insurance. — Against  loss  or  damage  to  domestic 
animals,  except  by  fire,  and  to  furnish  the  services  of  a  veterinary  sur- 
geon of  such  animals. 

(15)  Other  Casualty  Insurance. — Against  loss  or  damage  to  prop- 
erty by  any  other  casualty  which  may  lawfully  be  the  subject  of  in- 
surance, and  which  shall  be  specified  in  the  articles  of  organization, 
and  for  which  no  other  provision  is  made  by  la\v. 

Section  IH'.n  is  referred  to  in   Biota  (11),  l<)!,.\m,  19.',5c,  i977. 

Stock   or   mutual    plan;     purposes;     separate   policies;     automobile 
insurance. 

SKfTio.v  1897a.  1.  Companies  may  be  formed  upon  the  stock  or  the 
mutual  plan  to  transact  any  kind  of  insurance  authorized  by  section 
1897. 


Ch.  89  23  1897c 

2.  No  company  shall  be  formed  for  the  purpose  of  engaging  in  any 
other  kind  of  insurance  than  that  specified  in  some  one  of  the  subsec- 
tions of  section  1897,  or  more  kinds  of  insurance  than  are  specified 
in  a  single  subsection,  except  that  a  company  may  be  formed: 

(a)  For  the  purpose  specified  in  subsections  1,  2,  and  12;  or 

(b)  For  the  purposes  specified  in  subsections  3  and  4;  or 

(c)  For  any  or  all  of  the  purposes  specified  in  subsections  4  to  8  and 
10  to  15,  inclusive. 

(d)  For  the  purpose  specified  in  subsection  9. 

(e)  For  any  or  all  of  the  purposes  specified  in  section  1897,  whether 
by  retrocession,  reinsurance,  or  direct  insurance,  provided  there  be 
maintained  separate  and  distinct  reserves  in  trust  for  each  kind  of  in- 
surance so  written. 

Separate  policy;    exceptions. 

3.  Insurance  under  each  subsection  of  section  1897  shall  be  written 
in  separate  and  distinct  policies,  except  that  the  same  policy  may  em- 
brace risks  specified  in  subsections  1  and  12,  7  and  10,  or  4  and  5,  and 
policies  under  subsection  3  may  contain  any  provision  operating  to 
safeguard  the  insurance  against  lapse,  or  giving  a  special  surrender 
value  or  an  annuity  providing  for  payments  not  exceeding  one  per  cent 
per  month  of  the  face  amount  of  the  policy  during  the  lifetime  of  vhe 
insured,  with  or  without  reduction  of  the  sum  insured,  in  the  event 
that  the  insured  shall  become  totally  and  permanently  disabled  from 
any  cause. 

4.  Insurance  against  damage  by  hail  to  crops  shall  be  written  in  sep- 
arate and  distinct  policies  from  other  insurance  mentioned  In  sub- 
section 1  of  section  1897. 

5.  Insurance  in  one  policy  may  be  effected,  by  any  company  licensed 
to  transact  the  business  mentioned  in  subsections  1,  2,  5,  or  10  of  sec- 
tion 1897,  upon  automobiles  and  vehicles  and  the  accessories  and  other 
property  transported  upon  and  used  in  connection  therewith,  against 
loss  by  collision  and  against  loss  by  legal  liability  for  damage  to  prop- 
erty resulting  from  the  maintenance  and  use  of  such  automobiles  or 
vehicles  and  against  loss  by  burglary  or  theft,  or  both,  and  against 
any  risk  mentioned  in  said  subsections  1,  2,  5,  or  10,  which  said  com- 
pany may  assume  under  its  license.  For  this  purpose,  a  fire  insurance 
company  need  not  use  the  standard  fire  policy. 

Mutual  companies;    name;    when  liability  limited. 

Section  1897b.  1.  The  name  of  every  corporation  hereafter  organ- 
ized doing  business  on  the  mutual  plan  shall  contain  the  word  "mutual." 

2.  No  name  shall  be  used  which  shall  be  so  similar  to  any  name  al- 
ready in  use  as  to  mislead  the  public  in  any  respect. 

Articles;    contents. 

Section  1897c.  1.  The  articles  of  a  mutual  insurance  company  shall 
provide: 

(a)  That  every  person,  corporation,  association  or  partnership  in- 
sured shall  be  a  member  and  shall  have  one  vote. 


1897e  24  Ch.  89 

(b)  For  amendment  of  the  articles  by  a  vote  of  three-fourths  of  the 
members  voting  at  a  regular  or  special  meeting  after  the  proposed 
amendment  has  been  filed  with  the  secretary  and  the  commissioner 
of  insurance  and  a  copy  thereof  with  notice  of  the  time  and  place  of 
meeting  has  been  mailed  to  each  member  at  least  thirty  days  prior  to 
such  meeting. 

Referred  to  in  lOJ^lg  (3).  , 

(c)  The  president,  vice-president  or  vice-presidents  and  all  of  the 
directors  shall  be  members  of  the  company. 

Limitation  of  risk;     kinds  of;    territory;     liability. 
2.  The  articles  of  a  mutual  insurance  company,  subject  to  the  con- 
dition that  the  same  be  expressed  in  every  policy,  may  limit: 

(a)  The  insurance  to  specified  kinds  or  classes  of  property,  lives, 
individuals  or  liabilities  within  any  subsection  of  section  1897; 

(b)  The  territory  within  which  insurance  shall  be  granted;  or 

(c)  The  liability  of  members,  which  liability  shall  be  the  annual 
premium  or  a  specified  number  of  times  the  annual  premium  subject, 
however,  to  the  provisions  of  subdivision  (d)  of  this  subsection. 

(d)  No  mutual  fire,  casualty  or  marine  insurance  company  licensed 
to  transact  business  in  this  state  shall  issue  a  non-assessable  policy 
unless  it  has  a  surplus  equal  to  the  sum  of  the  capital  and  surplus 
required  of  a  stock  company  to  begin  to  transact  the  same  kind  of  busi- 
ness or  equal  to  twenty  per  cent  of  its  premium  income  during  the 
preceding  year,  whichever  is  the  greater,  and  provided  further  that 
it  shall  cease  the  issue  of  such  policies  when  its  surplus  falls  below 
that  sum.  No  such  company  shall  issue  a  non-assessable  policy  until 
its  policy  form  and  plan  of  operation  is  submitted  to  and  approved  by 
the  commissioner  of  insurance. 

By-laws;    filing;    forfeiture. 

Section  1897d.  1.  Every  Insurance  corporation  shall  adopt  by-laws 
and  prescribe  the  manner  in  which  the  same  may  be  amended. 

A  copy  of  such  by-laws  and  of  any  amendments  thereto,  accompanied 
by  the  certificate  of  the  president  and  secretary  stating  that  the  same 
have  been  duly  adopted  and  that  such  copy  is  true  and  complete,  shall 
be  filed  with  the  commissioner  of  insurance  within  thirty  days  after 
such  adoption,  and  in  case  of  failure  so  to  do  each  shall  forfeit  twenty- 
five  dollars. 

Applications  for  insurance;    filing;    membership. 
Section  1897e.     1.  In  a  mutual  insurance  corporation,  a  statement 
of  the  agreements  or  application  for  insurance  made  before  organiza- 
tion shall  be  filed  with  the  commissioner  of  insurance  in  such  form 
as  he  shall  require. 

Membership  during  organization. 
2.  Every  person  making  such  agreement  or  application  shall,  after 
such  filing,  and  until  the  corporation  begins  to  transact  insurance,  be 
entitled  to  notice  of  and  to  participate  in  all  meetings  of  members  of 
the  corporation. 


Ch.  89  25  1897f 

Stock  corporations;  promotion;  subscription  contract. 
Section  1897f.  1.  (a)  No  person  shall  for  the  purpose  of  organiz- 
ing or  promoting  any  insurance  corporation  to  be  organized  or  pro- 
posed to  be  organized  within  or  without  this  state,  or  promoting  the 
sale  of  stock  of  such  corporation  by  it  after  organization  as  principal 
or  agent,  sell  or  agree  or  attempt  to  sell  within  this  state  any  stock 
in  such  insurance  corporation,  unless  the  contract  of  subscription  or 
of  sale  shall  be  in  writing  and  contain  a  provision  in  the  following 
language: 

(b)  "No  sum  shall  be  used  for  commission,  promotion  and  organiza- 
tion expenses  on  account  of  any  share  of  stock  in  this  corporation,  in 

excess  of  per  cent  of  the  amount  actually  paid  upon  separate 

subscriptions  (or  in  lieu  thereof  there  may  be  inserted,  "or  $- per 

share  from  every  fully  paid  subscription"),  for  such  stock,  and  the 
remainder  of  such  payments  shall  be  held  or  invested  as  authorized 
by  the  law  governing  such  insurance  corporation  and  held  by  the  or- 
ganizers (or  trustees,  as  the  case  may  be)  and  the  directors  and  offi- 
cers of  such  corporation  after  organization  as  bailees  for  the  sub- 
scriber, to  be  used  only  in  the  conduct  of  the  business  of  insurance  by 
such  corporation  after  having  been  licensed  therefor  by  proper  author- 
ity." 

(c)  The  term  "stock,"  as  used  in  this  section,  shall  include  bonds 
and  any  other  evidences  of  indebtedness  or  of  interest  in  the  profits 
of  any  such  corporation. 

Deposit  of  funds. 

2.  Funds  and  securities  held  by  such  organizers,  trustees,  directors 
or  officers  as  bailees  shall  be  deposited  with  any  bank  or  trust  com- 
pany of  this  state  until  such  corporation  has  been  licensed  as  afore- 
said. 

Promotion  expenses  and  commission  limited;    exceptions. 

2m.  (a)  Every  contract  within  subsection  1  shall  contain  a  state- 
ment giving  the  names  of  the  organizers  (or  trustees  as  the  case  may 
be)  and  their  residence,  the  par  value  of  the  shares  and  the  prices  at 
which  shares  have  been,  are,  or  are  to  be  sold,  the  number  of  shares 
at  each  price,  the  total  number  of  shares,  and  be  filled  in  with  the 
percentage  or  amount  which  may  be  used  for  commission,  promotion 
or  organization  expenses,  which  together  shall  not  exceed  fifteen  per 
cent  of  the  amount  actually  paid  upon  separate  subscriptions  for  such 
stock. 

(b)  Until  the  thirtieth  day  of  September,  1912,  the  provisions  of 
paragraph  (a)  of  this  subsection  shall  not  apply  to  the  organization 
of  or  sale  of  stock  in  any  domestic  insurance  corporation,  which  has 
filed  its  articles  of  organization  with  the  commissioner  of  insurance 
before  the  taking  effect  of  this  subsection. 

Person  sliaring  commission  disclosed;     liability  if  not. 

3.  No  person  shall  participate  in,  receive  or  accept  any  part  or  prom- 
ise of  any  papt  of  any  of  the  commissions  or  rewards  of  any  organizer. 


lS97f  26  Ch.  89 

promoter  or  agent  for  the  sale  of  any  such  stock,  unless  the  name  of 
such  person  and  the  fact  of  his  interest  in  such  commissions  or  re- 
ward shall  appear  upon  such  contract  or  subscription.  The  omission 
of  such  statement  from  any  such  contract  shall,  in  addition  to  the 
penalty  herein  provided,  make  such  person  liable  to  the  purchaser 
or  his  assignees  for  all  sums  paid  by  such  purchasers  with  interest  at 
the  legal  rate  from  date  of  payment  upon  the  assignment  or  tender 
of  assignment  of  the  stock  so  purchased. 

Discrimination    prohibited. 

4.  No  person  receiving  any  commission  or  other  profit  or  advantage 
as  organizer,  promoter  or  agent,  selling  or  agreeing  or  attempting  to 
sell  any  such  stock,  or  at  any  time  in  consideration  of,  or  in  connec- 
tion with  any  such  sale  or  contract  of  subscription  shall,  directly  or 
indirectly,  make  or  offer  to  make  any  contract  or  agreement  other 
than  as  plainly  expressed  therein,  nor  shall  any  such  contract  of  sub- 
scription contain  any  agreement  for  employment  or  for  any  deposit  or 
for  any  special  advantage  to  the  person  purchasing  or  contracting  for 
such  stock. 

Literature  to  be  filed. 

5.  No  person  shall  issue,  deliver,  circulate  or  publish  in  this  state 
any  advertisement  in  any  newspaper  or  periodical  published  in  this 
state  or  any  circular  or  prospectus  for  the  sale  of  stock  of  any  insur- 
ance within  or  without  this  state,  for  the  purpose  of  soliciting  or  secur- 
ing subscriptions  to  or  contracts  for  the  purchase  of  stock  in  any  such 
corporation,  unless: 

(a)  A  copy  of  such  circular,  prospectus  or  other  advertisement  shall 
first  have  been  filed  in  the  office  of  the  commissioner  of  insurance. 

(b)  The  same  shall  contain  the  name  and  address  of  the  person 
issuing,  delivering,  circulating  or  publishing  the  same,  with  a  con- 
secutive serial  number  for  each  separate  form  of  such  circular,  prospec- 
tus or  other  advertisement. 

Penalty. 

6.  Any  person  violating  this  section  shall  be  punished  by  a  fine  of 
not  less  than  twenty-five  dollars  nor  more  than  one  thousand  dollars, 
or  by  imprisonment  in  the  county  jail  not  exceeding  six  months  or 
by  both  such  fine  and  imprisonment. 

Contract  valid. 

7.  A  contract  for  subscription  to  or  the  purchase  of  stock  in  any  in- 
surance corporation  not  conforming  to  the  provisions  of  this  section 
shall  be  valid  and  enforceable  in  favor  of  the  subscriber  or  purchaser, 
but  shall  not  be  valid  or  enforceable  In  favor  of  the  corporation  or 
any  person  selling  such  stock,  either  as  principal  or  agent. 


Ch.  89  27  1897g 

Stock  companies;    capital  stock  required. 
Section   1897g.     1.  No   stock  insurance  company   shall  transact  the 
business  of  insurance  unless: 

(a)  It  has  a  capital  stock  actually  paid,  in  cash  or  invested  as  pro- 
vided by  law,  of  at  least  one  hundred  thousand  dollars  for  the  insur- 
ance specified  in  any  one  subsection  of  section  1897; 

(b)  With  an  additional  fifty  thousand  dollars  for  the  insurance  men- 
tioned in  any  other  subsection  which  may  be  transacted  by  such  com- 
pany; 

(c)  Provided  that  the  capital  stock  required  or  to  be  added  for  trans- 
acting business  under  either  subsection  4  or  14  need  not  exceed  twenty- 
five  thousand  dollars; 

(d)  Provided,  that  a  company  transacting  the  business  mentioned 
in  subsection  1  shall  not  require  any  additional  capital  to  transact 
that  mentioned  in  subsection  12,  and  that  the  total  capital  required  to 
transact  the  business  mentioned  in  several  or  all  of  subsections  4,  5, 
6,  8,  9,  10,  11,  12  and  13,  need  not  exceed  two  hundred  and  fifty  thou- 
sand dollars. 

Surplus  required. 

2.  Nor  shall  any  stock  insurance  company  begin  to  transact  the 
business  of  insurance  in  this  state  unless  it  has  a  surplus,  including 
the  fund  mentioned  in  paragraph   (b)   of  section  1897s  actually  paid, 

,  in  cash  or  invested  as  provided  by  law,  equal  to  one-fourth  of  its  cap- 
ital stock. 

Mutual  companies;    members;    corporations. 

3.  Any  mutual  insurance  company  may  issue  policies  to  any  public 
or  private  corporation,  board  or  association  in  this  state  and  else- 
where; and  any  public  or  private  corporation,  board  or  association  of 
this  state  is  authorized  to  make  applications,  enter  into  agreements  for 
and  hold  policies  in  any  mutual  insurance  company. 

Mutuals,  borrowing  money;    surplus  notes. 

4.  Any  mutual  insurance  company  may  borrow  money  from  any 
officer,  director,  member  or  other  person,  for  the  purposes  of  its  busi- 
ness or  to  enable  it  to  comply  with  any  requirement  of  law.  No  dis- 
count, commissions  or  promotion  expenses  shall  be  allowed  or  paid  on 
such  loan.  Upon  receiving  the  full  amount  of  the  principal  to  be  used 
solely  for  such  purposes,  the  company  may  issue  its  surplus  notes, 
which  shall  fully  recite  the  conditions  of  the  loan.  Except  as  herein 
provided,  such  notes  and  indebtedness  shall  not  be  a  liability  or  claim 
against  any  of  the  assets  of  the  company.  The  principal  and  interest 
shall  be  payable  only  from  the  surplus  over  all  liabilities.  The  notes 
shall  draw  interest  as  agreed  upon,  not  exceeding  ten  per  centum  per 
annum.  The  amount  of  principal  and  interest  unpaid  shall  be  reported 
in  each  annual  statement. 


1897s  28  Ch.  89 

Domestic  companies;    condition  of  transacting  business. 

Section  18971.  1.  No  domestic  insurance  corporation  shall  continue 
or  transact  business,  other  than  the  dissolution  and  winding  up  of  Its 
affairs,  at  any  time  after  its  risks  outstanding,  for  a  period  of  one 
year,  shall  have  been  below  the  minimum  prescribed  by  section  1898d. 

Incorporators;  directors;  liability. 
2.  The  original  incorporators  during  the  first  year  after  the  filing 
of  the  articles  of  organization  and  until  the  election  of  directors,  and 
thereafter  the  directors,  shall  be  jointly  and  severally  personally  liable 
for  any  losses  incurred  during  the  time  or  times  hereinafter  men- 
tioned: 

(a)  Upon  any  policies  written,  issued  or  delivered  during  any  time 
when  the  risks  outstanding  shall  be  below  the  minimum  prescribed  by 
section  1898d,  and 

(b)  For  the  excess  of  any  policy  above  the  maximum  single  risks 
prescribed  by  section  1898  during  the  time  while  such  policy  exceeds 
such  maximum  single  risk. 

Mutuals,  surplus  safeguarded;    dissolution;    reorganization. 

Section  1897k.  1.  After  January  1,  1912,  no  domestic  mutual  in- 
surance company  shall  pay  to  any  member,  for  or  on  account  of  his 
membership  in  such  company,  upon  dissolution,  in  dividends,  or  in  any 
other  manner,  in  addition  to  the  insurance  benefits  promised  in  the 
policy,  any  sum  in  excess  of  the  payments  made  by  the  member  with 
interest  at  six  per  cent  compounded  annually. 

2.  Upon  dissolution  of  any  such  corporation  any  assets  or  property 
held  by  it  in  excess  of  its  liability,  and  of  the  amounts  which  may  be 
paid  to  its  members  under  subsection  1,  shall  be  paid  into  and  belong 
to  the  school  fund  of  the  state,  as  a  license  fee  charged  to  such  cor- 
poration upon  dissolution. 

3.  Every  such  corporation  having  assets  in  excess  of  one  per  cent 
of  the  amount  of  its  insurance  in  force  shall,  before  being  licensed  to 
do  business  in  this  state,  file  with  the  application  for  such  a  license 
a  resolution  duly  adopted  by  its  board  of  directors  and  signed  by  its 
president  and  secretary,  wherein  it  shall  agree  that  its  assets  shall  be 
distributed  in  accordance  with  subsections  1  and  2  of  this  section. 
And  no  license  shall  be  issued  to  such  company  until  after  the  adop- 
tion and  filing  of  such  resolution. 

4.  No  domestic  mutual  insurance  company  shall  be  reorganized  in 
any  manner  into  a  corporation  with  capital  stock. 

Conditions  of  transacting  insurance;    special  surplus  fund. 

Section  1897s.  No  domestic  insurance  company  shall  begin  to  trans- 
act the  business  of  insurance  until: 

(a)  It  shall  issue  simultaneously  policies  upon  two  hundred  or  more 
risks,  each  within  the  niaxinuini  single  risks  prescribed  in  section 
1898;    or 


Ch.  89  29  1898d 

(b)  It  shall  hold  a  fund  in  excess  of  the  capital  stock,  if  any,  in 
cash  or  invested  as  provided  by  law,  equal  to  ten  times  the  maximum 
single  risk  to  be  assumed,  which  fund  shall  be  used  for  the  payment 
of  losses  only  and  may  be  repaid  only  after  the  risks  outstanding  shall 
exceed  the  minimum  prescribed  in  section  189Sd; 

(c)  It  shall  have  received,  in  cash,  not  less  than  one  annual  pre- 
mium upon  each  application  pending  or  risks  outstanding.  If  any  ap- 
plication or  policy  covers  a  period  greater  than  one  year,  the  premium 
shall  be  on  hand  for  such  greater  period.  No  part  of  the  premium  so 
received  shall  be  paid  or  used  for  promotion  expense. 

Examination  first;    certificate. 
Section  1897t.     No  domestic  insurance  company  shall  begin  to  trans- 
act  insurance  until  the  same  shall  have  been  fully  examined  by  the 
commissioner  of  insurance  and  he  shall  issue  a  certificate: 

(a)  That  such  company  has  a  capital,  surplus  and  applications  for 
risks  outstanding,  as  the  case  may  be,  and  as  required  by  law; 

(b)  That  its  funds  are  held  in  cash  or  invested  as  required  by  law; 

(c)  That  those  making  applications  for  insurance  are  in  a  position 
to  perform  the  same; 

(d)  That  the  incorporators  and  proposed  directors  are  financially  re- 
sponsible for  and  understand  the  obligations  imposed  upon  them  by 
law;  and 

(e)  That  said  company  has  fully  complied  with  all  requirements  of 
the  law. 

Section  1897t  is  referred  to  in  20.55  (3). 

Risk;    maximum  single;    reinsurance. 

Section  1898.  1.  (a)  Except  as  otherwise  provided  by  law  the  maxi- 
mum single  risk  shall  be  ten  per  centum  of  the  admitted  assets. 

(b)  In  a  mutual  company  it  may  be  a  greater  amount  not  exceeding 
three  times  the  average  policy  or  one-fourth  of  one  per  centum  of  the 
insurance  in  force,  whichever  is  the  greater. 

(c)Upon  the  business  mentioned  in  subsection  (14)  of  section  1897, 
in  a  stock  company,  it  shall  be  one-twentieth  of  the  paid-up  capital. 

2.  Any  reinsurance  taking  effect  simultaneously  with  the  policy  shall 
be  deducted  in  determining  such  maximum  single  risk. 

3.  In  a  mutual  company  organized  under  subsection  (9)  of  section 
1897,  for  the  insurance  or  guarantee  of  depositors  or  deposits  in  banks 
or  trust  companies,  the  maximum  single  risk  iiiay  be  fixed  at  such 
higher  amount  as  specified  in  the  by-laws. 

4.  Any  such  company  may  effect  reinsurance  in  any  authorized  or  un- 
authorized company,  that  complies  with  the  provisions  of  subsection  1 
of  section  1905,  providing  that  insurance  in  any  unauthorized  company 
shall  be  reported  annually  and  the  same  taxes  paid  upon  the  premiums 
as  are  paid  by  authorized  companies. 

Minimum  risks  outstanding. 

Section  1898d.  The  minimum  of  risks  outstanding  shall  be  two  hun- 
dred, each  within  the  maximum  single  risk  prescribed  in  section  1898. 


190  Ij  30  Ch.  89 

Reserve  liabilities;   order  of  commissioner. 

Section  1899.  (a)  Where  no  other  provision  is  made  therefor  by 
law,  the  reserve  liabilities  of  any  insurance  company  shall  be  calcu- 
lated upon  such  basis,  method,  and  plan  as  shall  fully  provide  for  all 
such  liabilities. 

(b)  Subject  to  such  review  in  the  courts  as  provided  by  law,  any 
such  basis,  method,  and  plan,  or  either,  fixed  by  the  order  of  the  com- 
missioner of  insurance  made  and  filed  in  his  office,  shall  be  prima  facie 
just,  reasonable  and  proper. 

Referred  to  iti  l91om  (6). 

Policy  provisions;     limitation  of  action;    matter  incorporated  to  be 
cited  or  attached. 

Section  1900.  1.  No  policy  or  contract  of  insurance  shall  be  made, 
issued  or  delivered  in  this  state  containing  any  provision: 

(a)  Limiting  the  time  for  beginning  an  action  on  the  policy  or  con- 
tract to  a  time  less  than  that  prescribed  by  the  statutes  of  limitations 
of  this  state,  or  specifically  authorized  by  law. 

(b)  Incorporating  into  the  policy  or  contract  any  matter  not  fully 
set  forth  therein,  or  in  a  copy  of  any  application,  or  of  any  other  mat- 
ter attached  to  and  made  a  part  of  such  policy  or  contract  at  the  time 
of  its  delivery. 

(c)  Incorporating  into  the  policy  or  contract  any  provision  pre- 
scribing in  what  court  any  action  may  be  brought  thereon  or  that  no 
action  shall  be  brought  thereon. 

Note. — The  statutes  of  limitations  as  to  insurance  contracts  is  six 
years.     Sec.  4222  (3). 

Policy  may  except  owner's  first  part  of  loss. 

Section  1900f.  1.  A  policy  or  contract  of  insurance  may,  notwith- 
standing anything  to  the  contrary  in  the  statutes,  contain  in  the  policy 
or  in  a  rider  attached  thereto: 

(a)  A  provision  that  the  insured  shall  bear  the  first  part  of  any  loss 
as  provided  therein  to  a  specified  percentage  not  exceeding  five  per 
centum  of  the  amount  of  insurance. 

2.  In  any  case  of  loss,  the  company  or  insurer  shall  pay  the  excess 
after  deducting  from  the  adjustment  the  part  aforesaid.  No  such  pro- 
vision shall  be  valid  unless  there  be  stamped,  written  or  printed  upon 
the  filing  back  of  the  policy,  an  indorsement  hereby  authorized,  which 

shall  read:    "Rate  reduced  from  $ to  $ ,  in  consideration 

of  the  insured  bearing  the  first  part  of  any  loss  as  herein  provided." 
Both  blanks  must  be  filled. 

Referred  to    in    ]!)5S  (1). 

Expenses;  limitation;  exceptions. 
Section  1901j.  Except  as  otherwise  provided  by  law  and  excepting 
companies  transacting  only  health  and  accident  insurance,  no  mutual 
insurance  company  shall  pay  or  incur  in  any  year  any  expense,  exclu- 
sive of  investment  expenses,  taxes  and  fees,  in  excess  of  fifty  per 
centum  of  the  premiums  and  assessments  collected  during  the  year;  or 


Ch.  89  31  J90.; 

in  excess  of  one-half  of  one  per  centum  on  the  greatest  amount  of  in- 
surance in  force  at  any  time  during  the  year,  whichever  is  the  greater. 

Classification  of  risks. 

Section  1901m.  A  mutual  insurance  company  may  classify  the  prop- 
erty or  risks  insured,  at  the  time  of  insuring  the  same,  under  different 
rates  corresponding  as  nearly  as  may  be  to  the  greater  or  less  risks 
which  may  be  attached  thereto. 

Policy  terms. 

Section  1901n.  Except  as  otherwise  provided  by  law,  no  mutual  fire 
insurance  company  shall  make  any  contract  for  insurance  expiring 
more  than  five  years  after  the  date  thereof. 

Trading  prohibited;  investments  in  real  estate  limited. 
Section  1902.  1.  No  insurance  company  organized  under  any  gen- 
eral law  of  this  state  shall,  directly  or  indirectly,  deal  or  trade  in  buy- 
ing or  selling  any  goods,  wares,  merchandise  or  other  commodities 
whatever,  excepting  such  goods  or  articles  as  may  have  been  insured 
by  such  corporation  and  are  claimed  to  be  damaged  by  the  risk  insured 
against. 

2.  No  such  company  shall  acquire  or  hold  real  estate,  excepting  for 
the  purposes  and  in  the  manner  following: 

(a)  Such  as  shall  be  necessary  for  the  convenient  transaction  of 
its  business,  including  with  its  offices  other  apartments  to  rent  as  a 
source  of  income,  the  value  of  which  shall  not  exceed  twenty  per  cent 
of  its  admitted  assets. 

(b)  Such  as  has  been  or  shall  be  conveyed  or  mortgaged  to  it  in 
good  faith  by  way  of  surety  for  loans  or  for  debts  or  for  money  due  in 
its  legitimate  business,  or  such  as  may  have  been  purchased  at  sales 
upon  judgments  or  mortgages  obtained  or  made  for  such  debts. 

3.  All  real  estate  except  that  mentioned  in  paragraph  (a),  of  sub- 
section 2,  shall  be  sold  or  disposed  of  before  the  first  day  of  January, 
1916,  or  within  five  years  after  the  same  shall  have  been  acquired,  un- 
less such  time  be  extended  by  the  commissioner  of  insurance. 

'  4.  The  commissioner  of  insurance  may  upon  the  application  of  the 
company  showing  that  it  will  suffer  materially  from  a  forced  sale 
thereof,  authorize  the  postponement  of  such  sale  for  such  period  as  he 
shall  fix,  not  exceeding  five  years. 

5.  Such  authority  may  be  renewed  from  time  to  time. 
Section  1902  is  referred  to  in  section  1931  (5). 

Section  1903.  Except  as  otherwise  provided  by  law,  a  domestic  in- 
surance corporation  may  invest  its  assets  as  follows: 

(a)  In  the  lawfully  authorized  bonds  or  other  evidences  of  indebted- 
ness of  the  United  States  or  of  any  state  of  the  United  States,  or  of  the 
Dominion  of  Canada  or  of  any  province  thereof. 

(b)  In  the  lawfully  authorized  bonds  or  other  evidences  of  indebted- 
ness of  any  county,  city,  town,  village,  school  district  or  other  munic- 
ipal  district  within   the   United   States   or   the   Dominion   of   Canada, 


J903  32  Ch.  89 

which  shall  be  a  direct  obligation  of  the  county,  city,  town,  village  or 
district  issuing  the  same;  provided,  that  any  such  municipal  district 
other  than  a  county,  city,  town,  village  or  school  district  shall  have  a 
population  according  to  the  last  national  or  state  census  preceding  the 
date  of  such  investment  of  not  less  than  one  hundred  thousand. 

(c)  In  loans  upon  improved  and  unincumbered  real  property  in  any 
state  of  the  United  States,  and  upon  leasehold  estates  in  improved  real 
property  for  a  term  of  *  *  *  years  *  *  *  where  twenty-five  years  or 
more  of  the  term  is  unexpired  and  where  unincumbered  except  by 
rentals  accruing  therefrom  to  the  owner  of  the  fee,  and  where  the 
mortgagee  is  entitled  to  be  subrogated  to  all  the  rights  under  the  lease- 
hold; provided,  that  the  fair  market  value  of  such  real  property  or  such 
leasehold  estate  at  the  time  of  the  loan  shall  be  at  least  fifty  per  centum 
more  than  the  sum  loaned  thereon,  exclusive  of  buildings  unless  such 
buildings  are  kept  insured  to  an  amount  which,  together  with  one-half 
the  value  of  the  land,  shall  equal  or  exceed  the  loan,  and  the  policy  or 
policies  of  insurance  thereon  be  assigned  to  and  held  by  said  corpora- 
tion as  collateral  to  such  loan. 

(d')  In  the  mortgage  hands  of  the  farm  loan  banks  authorized  under 
federal  farm  loan  act,  bonds  issued  by  Wisconsin  corporations  organ- 
ized under  the  provisions  of  sections  2024 — 100  to  202Jf — 146,  inclusive, 
and  in  obligations  secured  by  mortgages  or  trust  deeds  authorized  in 
subsection  (c)  of  this  section. 

*  *  *  (e)  In  the  first  mortgage  bonds  of  any  railroad  or  other 
public  service  corporation  of  any  state  or  territory  of  the  United 
States,  or  of  the  District  of  Columbia,  or  of  any  province  of  the  Do- 
minion of  Canada. 

*  *  *  (f)  In  the  lawfully  authorized  bonds  or  other  evidences  of 
indebtedness  of  any  foreign  government  in  an  amount  not  exceeding 
twenty-five  per  centum  of  the  capital  stock  of  such  corporation  and  in 
the  stocks  and  bonds  and  other  evidences  of  indebtedness  of  any  solvent 
dividend  paying  corporation  of  any  state  or  territory  of  the  United 
States,  of  the  District  of  Columbia,  or  of  any  province  of  the  Do- 
minion of  Canada,  *  *  *  excepting  stock  in  its  own  corporation 
*  *  *,  No  such  investment  shall  be  made  in  any  unincorporated  busi- 
ness or  enterprise,  nor  in  the  stocks,  bonds  or  other  evidences  of  in- 
debtedness of  any  corporation,  the  owners  or  holders  of  which  may. 
in  any  event,  be  or  become  liable  on  account  thereof  to  any  assessment 
except  for  taxes  or  laborers'  liens.     *     *     * 

*  *  *  (g)  In  loans  upon  collateral  security  of  any  of  the  fore- 
going securities;  provided,  that  the  market  value  of  such  securities 
shall  not,  during  the  continuance  of  such  loan,  be  less  than  the  in- 
debtedness thereon. 

*  *  *  (h)  In  such  real  property  as  shall  be  necessary  for  the 
convenient  transaction  of  its  business,  subject  to  other  provisions  of 
law. 

*  *  *  (i)  Every  such  domestic  corporation  doing  business  in  any 
foreign  country,  may  invest  the  funds  required  to  meet  its  obligations 


Ch.  89  33  1905 

incurred  in  sucli  foreign  country  in  conformity  to  the  laws  ttiereof  in 
the  kind  of  securities  of  such  foreign  country  in  which  such  corpora- 
tion is  authorized  to  invest  in  tliis  state. 

2.  Any  such  domestic  insurance  corporation  shall  invest  and  keep 
invested  an  amount  at  least  equal  to  its  paid-up  capital  stock  in  any 
of  the  securities  mentioned  in  paragraphs  (a),  (b)  and  *  *  *  (c)  of 
subsection  1  of  this  section,  or  in  loans  upon  real  estate  located  within 
this  state,  or  in  mortgage  bonds  of  the  farm  loan  banks  authorized 
under  the  federal  farm  loan  act. 

3.  No  domestic  insurance  corporation,  including  any  domestic  in- 
surer, shall  make  any  investment  not  authorized  by  law. 

4.  No  such  corporation  shall  invest  *  *  *  more  than  ten  per  cent  of 
its  admitted  assets  *  *  *  in  the  stock  or  securities  of  any  one  cor- 
poration.    [Ch.  465,  1921] 

(Chapter  J,G5,  1921). 

Lien  upon  stock. 
Section  1904.  Any  insurance  corporation  may  have  a  lien  upon  the 
stock  or  certificate  of  profits  owned  by  any  member  for  any/iebt  due  or 
to  become  due  the  corporation  for  premiums  by  providing  therefor  by 
the  by-laws  and  by  stating  on  the  face  of  the  certificate  of  stock  or 
profits  that  the  same  is  subject  to  any  such  lien;  and  such  lien  may  be 
waived  in  writing  by  the  consent  of  the  president  of  such  corporation 
upon  the  transfer  of  any  such  stock. 

Reinsurance. 

Section  1905.  1.  Any  insurance  company  or  association  author- 
ized to  transact  business  in  this  state  may,  unless  otherwise  pro- 
vided by  law,  assume  as  a  reinsurer  the  whole  or  any  part  of  the 
liability  of  any  other  company  or  association  upon  such  risks  as  if 
may  insure  direct;  and  may,  unless  otherwise  provided  by  law, 
cede  to  and  reinsure  in  any  other  responsible  company  or  companies, 
whose  capital  and  surplus  shall  equal  or  exceed  the  minimum  of 
capital  and  surplus  required  by  domestic  companies  for  the  trans- 
action of  similar  business,  provided  such  company  or  companies  are 
organized  under  the  laws  of  or  licensed  to  transact  business  in  some 
state  of  the  United  States,  the  whole  or  any  part  of  its  liability  upon 
risks  assumed. 
Referred  to  in  1898  (1,). 

2.  But  no  stock  fire  insurance  or  fire  reinsurance  corporation  shall 
expose  itself  to  any  loss  on  any  one  risk  or  hazard  to  an  amount  ex- 
ceeding ten  per  centum  of  its  paid-up  capital  and  surplus.  No  portion 
of  any  such  risk  or  hazard  which  shall  have  been  reinsured  as  author- 
ized by  law  shall  be  included  in  determining  the  limitation  of  risk 
prescribed  by  this  section. 

3.  No  fire  insurance  or  fire  reinsurance  corporation  or  association 
shall  assume  as  a  reinsurer  or  otherwise,  in  any  manner  or  form  what- 
soever, the  whole  or  any  part  of  any  risk  or  liability  covering  property 

3 


1908a  34  Ch.  89 

located  within  this  state  of  any  fire  insurance  or  fire  reinsurance  cor- 
poration or  association  not  authorized  to  transact  business  in  this  state. 

4.  The  receiver  of  any  insurance  company,  when  authorized  by  the 
court  to  do  so,  may  reinsure  all  its  risks  in  any  solvent  corporation 
authorized  to  do  a  similar  business  in  this  state,  if  the  assets  of  the 
corporation  of  which  he  is  receiver  are  sufficient  to  effect  such  rein- 
surance; if  such  assets  are  insufficient  the  receiver,  upon  the  like  con- 
sent, may  reinsure  a  percentage  of  each  such  risk  of  such  corporation 
outstanding  to  the  extent  of  its  assets  available  for  that  purpose. 

5.  Any  fire  insurance  company  or  reinsurance  company  licensed  to 
do  business  in  this  state,  shall,  on  retiring  from  business  before  the 
expiration  of  its  policies  or  contracts,  file  with  the  insurance  commis- 
sioner a  written  notice  of  such  intention  together  with  a  sworn  state- 
ment of  its  outstanding  liabilities  or  obligations  under  such  policies  or 
contracts  and  shall  reinsure  such  liabilities  or  obligations  in  a  com- 
pany authorized  to  do  business  in  this  state. 

Stock  companies;  capital;  increase;  amendment  of  articles;  ex- 
amination. 

Section  1908.  Unless  otherwise  provided  in  the  articles  no  insurance 
corporation  shall  increase  its  capital  stock  without  the  written  consent 
oi  the  holders  of  three-fourths  of  the  capital  stock  outstanding.  The 
amendment  of  its  articles  increasing  its  capital  stock  shall  be  adopted 
as  otherwise  provided  by  law,  and  shall  not  be  filed  by  the  commis- 
sioner of  insurance  until  after  he  shall  have  made  the  same  examina- 
tion, in  the  same  manner,  and  on  the  same  conditions,  as  upon  the  or- 
ganization or  admission  of  a  like  corporation. 

Compare  sectio7i  I'JOS  ivith  190Sa. 

Increase  of  capital. 

Section  1908a.  Any  stock  insurance  corporation  organized  under 
the  laws  of  this  state,  or  heretofore  organized  and  doing  business 
under  the  laws  of  this  state,  whenever  it  shall  have  accumulated 
and  be  in  possession  of  a  fund,  in  addition  to  the  amount  of  its 
capital  stock  and  all  actual  outstanding  liabilities,  including  rein- 
surance reserve,  in  excess  of  one-half  of  the  amount  of  all  premiums  on 
risks  not  terminated,  such  corporation  may  increase  its  capital  stock 
from  such  fund,  and  distribute  said  increase  pro  rata  to  the  stockholders 
OI  such  corporation;  provided,  always,  that  such  increase  shall  be  equal 
to  at  least  twenty-five  per  centum  of  the  original  capital  stock  of  said 
corporation  and  shall  have  been  authorized  by  at  least  three-fourths 
of  the  members  of  the  board  of  directors  of  such  corporation  and  ap- 
proved by  the  commissioner  of  insurance;  and,  provided,  also,  that  any 
such  corporation  may  hereafter  make  and  declare  a  dividend  as  pro- 
vided in  section  1908. 

Sec  section  1908. 


Ch.  89  35  1908m 

Consolidation  of  domestic  fire  corporations. 
Section  1908m.  1.  (a)  Any  stock  insurance  corporation  organized 
under  any  law  of  this  state  may  merge  or  consolidate  such  corporation 
with  another  domestic  or  foreign  stock  corporation  into  one  corporation 
to  be  located  in  and  organized  under  the  laws  of  this  state  and  using 
the  nafne  of  one  or  more  of  the  corporations.  In  case  of  a  consolidation 
with  a  foreign  corporation  compliance  shall  be  had  with  the  laws  of  the 
state  where  such  corporation  is  located.  Except  as  to  life  companies, 
the  provisions  of  sections  1955—21  to  1955 — 26,  inclusive,  of  the 
statutes,  shall  not  apply  to  a  merger  or  consolidation  under  this  section. 

(b)  The  corporations  may  enter  into  and  make  an  agreement  for 
such  merger  or  consolidation,  executed  under  their  corporate  seals  by 
the  president  and  secretary,  by  the  authority  of  the  board  of  directors 
of  each  respectively. 

(c)  Such  agreement  shall  recite  the  articles  of  organization  under 
which  the  business  of  the  merged  or  consolidated  corporation  is  to 
be  conducted,  which  shall  conform  to  the  provisions  of  either  one  or 
more  of  the  articles  of  the  merging  or  consolidating  corporations,  or 
otherwise  conforming  to  the  requirements  for  the  articles  of  organiza- 
tion of  like  corporations  organized  under  the  laws  of  this  state. 

(d)  The  capital  shall  not  be  larger  than  the  aggregate  paid-up  capi- 
tal of  the  merged  or  consolidated  corporation  unless  the  provisions  of 
section  1908  shall  have  been  complied  with  by  each  of  the  consolidating 
corporations.  The  same  fee  shall  be  paid  for  an  increase  of  the  capital 
above  such  aggregate  paid-up  capital,  as  in  other  cases  on  amendment 
of  articles  of  incorporation  under  section  1774. 

(e)  Such  agreement  must  be  assented  to  by  a  vote  of  a  majority  of 
all  the  directors  of  each  corporation  and  must  be  approved  by  the 
votes  of  stockholders,  in  person,  or  by  proxy,  owning  at  least  two- 
thirds  of  the  stock  of  each  corporation,  at  a  meeting  called  separately 
for  that  purpose. 

(f)  A  notice  stating  the  time,  place,  and  object  of  the  meeting,  shall 
be  served  upon  each  stockholder  personally  or  mailed  to  him  at  his 
last  known  post-offlce  address  at  least  thirty  days  prior  to  the  date  of 
holding  such  meeting,  and  shall  also  be  published  at  least  once  a  week 
for  four  weeks  successively  in  some  newspaper  printed  in  the  city 
where  such  corporation  has  its  principal  office. 

2.  (a)  Such  agreement,  with  the  certificate  of  the  secretaries  of 
the  respective  corporations,  under  the  seals  thereof,  reciting  compli- 
ance with  the  provisions  of  this  section,  shall  be  filed  with  the  commis- 
sioner of  insurance  and  may  be  approved  by  him,  after  such  examina- 
tion as  he  may  order  or  require. 

(b)  Such  agreement,  after  having  received  the  approval  of  the  com- 
missioner of  insurance,  shall  have  such  approval  endorsed  thereon 
and  a  duplicate  of  such  agreement,  with  a  certificate  of  the  commis- 
sioner showing  the  date  when  such  agreement  was  approved  and  filed 
by  the  commissioner  of  insurance,  shall  be  recorded  by  the  register 
of  deeds  of  each  county  wherein  any  of  such  merged  or  consolidated 


1909  36  Ch.  89 

companies  are  located,  as  in  the  case  of  the  making  of  any  amendment 
to  the  articles  of  such  corporation. 

(c)  Such  merger  and  consolidation  shall  be  deemed  effective  upon 
the  filing  of  such  duplicate  for  record  in  each  and  all  such  counties, 
and  thereafter  the  articles  of  organization  recited  in  such  agreement 
shall  stand  as  the  articles  of  organization  of  such  consolidated  corpora- 
tion subject  to  amendment  as  in  other  cases. 

3.  The  corporation  may  require  the  return  of  the  original  certifi- 
cates of  stock  held  by  each  stockholder  in  each  of  the  corporations  to 
be  merged  or  consolidated,  and  issue  in  lieu  thereof  new  certificates 
for  such  number  of  shares  of  its  own  stock  as  such  stockholders 
may  be  entitled  to  receive. 

4.  All  the  rights,  franchises,  and  interests  of  the  corporations  so 
merging  or  consolidating  in  and  to  every  species  of  property  and  things 
in  action  belonging  to  them,  or  either  of  them,  shall  be  deemed  to  be 
transferred  to  and  vested  in  the  new  corporation,  without  any  other 
deed  or  transfer,  and  the  new  corporation  shall  hold  and  enjoy  the  same 
to  the  same  extent  as  if  the  old  corporations,  or  either  of  them,  should 
have  continued  to  retain  their  titles  and  transact  business. 

5.  (a)  The  consolidated  corporation  shall  succeed  to  all  the  obliga- 
tions and  liabilities  of  the  old  corporations,  or  any  of  them,  and  shall 
be  held  liable  to  pay  and  discharge  all  such  debts  and  liabilities  in 
the  same  manner  as  if  they  had  been  incurred  or  contracted  by  it. 

(b)  The  stockholders  of  the  old  corporations  shall  continue  subject 
to  all  the  liabilities,  claims,  and  demands  existing  against  them,  or 
either  of  them,  at  or  before  such  merger  or  consolidation. 

(c)  No  action  or  proceeding  pending  at  the  time  of  the  consolida- 
tion in  which  any  or  all  of  the  old  corporations  may  be  a  party  shall 
abate  or  discontinue  by  reason  of  the  merger  or  consolidation,  but 
the  same  may  be  prosecuted  to  final  judgment  in  the  same  manner  as 
if  the  merger  or  consolidation  had  not  taken  place,  or  the  new  corpora- 
tion may  be  substituted  in  place  of  any  corporation  so  merged  or  con- 
solidated by  order  of  the  court  in  which  the  action  or  proceeding  may 
be  pending. 

6.  The  consolidated  corporation  shall  be  deemed  a  corporation  or- 
ganized under  chapters  86  and  89  of  the  statutes,  and  shall  possess  all 
of  the  rights  and  be  subject  to  all  of  the  liabilities  of  stock  corporations 
organized  under  said  chapters. 


GUARANTY   SURPLUS   FUND  AND   SPECIAL    RESERVE    FUND 

How  created;  commissioners  duty. 
SixTioN  1909.  Any  fire  insurance  corporation  now  or  hereafter  or- 
ganized may  create  the  funds  to  be  known  as  the  guaranty  surplus 
fund  and  the  special  reserve  fund  by  the  adoption  of  a  resolution  of  its 
board  of  directors  at  a  regular  meeting  thereof  and  by  filing  a  copy 
thereof  with  the  commissioner  of  insurance,  declaring  the  desire  and 
intention  of  such  corporation  to  create  such   funds  and   do  business 


Ch.  89  37  1911 

under  the  provisions  of  this  chapter  therefor.  Thereupon  the  commis- 
sioner shall  make  or  cause  to  be  made  an  examination  of  such  corpora- 
tion and  make  a  certificate  of  the  result  thereof,  which  shall  particu- 
larly set  forth  the  amount  of  its  surplus  funds  at  that  time  which  may, 
under  the  provisions  of  the  next  section,  be  equally  divided  between  and 
set  apart  to  constitute  such  funds,  which  certificate  shall  be  recorded 
in  the  insurance  department.  After  the  date  of  the  recording  of  such 
certificate  all  policies  and  renewals  issued  by  such  corporation  shall 
have  printed  thereon  a  notice  that  they  are  issued  subject  to  the  pro- 
visions of  sections  1909  to  1913,  inclusive,  of  these  statutes. 

Dividends;  surplus;  how  estimated. 
Section  1910.  Thereafter  no  such  corporation  shall  declare  or  pay 
in  any  form  any  dividend  exceeding  seven  per  cent  per  annum  upon 
its  capital  stock  until  after  its  guaranty  surplus  fund  and  its  special 
reserve  fund  shall  have  together  accumulated  to  an  amount  equal  to  its 
said  capital  stock;  and  the  entire  surplus  profits  of  such  corporation, 
above  such  annual  dividend,  shall  be  equally  divided  between  and  be 
set  apart  to  constitute  the  said  funds,  which  shall  be  held  and  used  as 
hereinafter  provided  and  not  otherwise;  and  any  such  corporation 
which  shall  declare  or  pay  any  dividend  contrary  to  the  provisions  of 
this  section  shall  be  liable  to  be  proceeded  against  by  the  attorney- 
general  for  its  dissolution.  In  estimating  such  surplus  profits  for  the 
purpose  of  making  a  division  thereof  between  said  funds  there  shall  be 
deducted  from  the  gross  assets  of  the  corporation,  including  for  this 
purpose  the  amount  of  the  special  reserve  fund,  the  sum  of  the  follow- 
ing items: 

(1)  The  amount  of  all  outstanding  claims. 

(2)  An  amount  sufficient  to  meet  its  liability  for  the  unearned 
premiums  received  on  policies  having  less  than  one  year  to  run  from 
date  of  policy  and  a  pro  rata  proportion  of  the  premiums  received  on 
the  policies  having  more  than  one  year  to  run  from  date  of  policy, 
which  shall  be  known  as  the  reinsurance  liability. 

(3)  The  amount  of  its  guaranty  surplus  fund  and  of  its  special  re- 
serve fund. 

(4)  The  amount  of  the  capital  of  the  corporation. 

(5)  Interest  at  the  rate  of  seven  per  cent  per  annum  upon  the 
amount  of  the  capital  for  whatever  time  shall  have  elapsed  since  the 
last  preceding  cash  dividend;  and  the  balance  shall  constitute  such 
divisible  surplus. 

Section  1910  is  referred  to  in  sections  1909,  1012. 

Investment  of  surplus. 
Section  1911.  The  said  guaranty  surplus  fund  shall  be  invested  in 
the  same  manner  as  capital  or  surplus  accumulations  may  be,  and  shall 
be  held  liable  and  applicable  in  the  same  manner  as  the  capital  stock 
to  the  payment  of  the  losses  generally,  and  such  special  reserve  fund 
shall  be  invested  only  as  capital  stock  may  be,  and  shall  be  deposited 
from,  time  to  time  as  the  same  shall  accumulate  and  be  invested  with 


1912  .  38  Ch.  89 

the  state  treasurer,  who  shall  permit  said  corporation  to  collect  and 
receive  the  interest  or  dividends  upon  such  securities  as  the  same  may 
accrue;  but  no  such  securities  so  deposited  shall  be  withdrawn  unless 
others  of  equal  amount  and  value  are  substituted  therefor;  and  such 
special  reserve  fund  shall  be  deemed  a  fund  contributed  by  the  stock- 
holders to  protect  such  corporation  and  its  policyholders,  other  than 
claimants  for  losses  already  existing  or  then  incurred,  in  cases  of  such 
extraordinary  conflagi'ations  as  are  mentioned  in  the  next  section;  and 
said  fund  shall  not  be  regarded  as  any  part  of  the  assets  of  said 
corporation  so  as  to  be  liable  for  any  claims  for  losses  except  as  here- 
inafter provided. 

Section  I'.Hl  is  refei-red  to  in  section  1909. 

Application  of  reserve;    discharge  of  company's  liability;    impaired 
capital. 

Sectiox  1912.  In  the  event  of  an  extensive  conflagration  whereby  the 
clafms  upon  any  such  corporation  shall  exceed  the  amount  of  the  capital 
stock  and  of  its  guaranty  surplus  fund,  the  corporation  shall  notify  the 
commissioner  of  insurance  thereof,  who  shall  then  make,  or  cause  to 
be  made,  an  examination  of  the  corporation,  and  shall  issue  his  certifi- 
cate of  the  result  in  duplicate  showing  the  amounts  of  capital,  of  guar- 
anty surplus  fund,  of  special  reserve  fund,  of  reinsurance  liability  and 
of  other  assets,  one  copy  to  be  given  to  the  corporation  and  one  to  be 
recorded  in  the  insurance  department;  thereupon  the  said  special 
reserve  fund  shall  be  immediately  held  to  protect  all  policyholders, 
other  than  such  as  are  claimants  upon  it  at  the  time  or  such  as  become 
claimants  in  consequence  of  such  conflagration;  and  the  amount  of 
such  special  reserve  fund  and  an  amount  equal  to  the  unearned  premi- 
ums of  such  corporation,  to  be  ascertained  as  provided  in  section  1910, 
shall  constitute  the  capital  and  assets  of  such  corporation  for  the  pro- 
tection of  policyholders,  other  than  such  claimants,  and  for  the  further 
conduct  of  its  business;  and  such  certificate  of  the  commissioner  shall 
be  binding  and  conclusive  upon  all  parties  interested,  whether  as  stock- 
holders, creditors  or  policyholders,  and  upon  payment  to  the  claimants 
for  losses  or  otherwise  existing  at  the  time  of  or  caused  by  such  general 
conflagration  of  the  amount  to  which  they  are  respectively  entitled,  in 
proportion  to  their  several  claims,  of  the  full  sum  of  the  capital  of  such 
corporation,  its  guaranty  surplus  fund  and  its  assets,  excepting  only 
such  special  reserve  fund  and  an  amount  of  its  assets  equal  to  its  lia- 
bility for  unearned  premiums  as  so  certified,  such  corporation  shall  be 
forever  discharged  from  any  and  all  further  liability  to  such  claimants 
and  to  each  of  them;  and  the  state  treasurer  shall,  after  issuing  such 
certificate  by  the  commissioner,  upon  the  demand  of  such  corporation, 
transfer  to  it  all  such  securities  as  it  shall  have  deposited  with  him 
as  such  special  reserve  fund;  and  if  the  amount  of  such  special  reserve 
fund  be  less  than  fifty  per  cent  of  the  full  amount  of  the  capital  of  the 
corporation  a  requisition  shall  be  issued  by  the  commissioner  of  insur- 
ance upon  the  stockholders  to  make  up  such  capital  to  that  proportion 
of  its  full  amount  in  the  manner  provided  by  law  in  the  case  of  cor- 


Ch.  89    '  39  1914a 

porations  with  impaired  capitals;  and  any  capital  so  impaired  shall  be 
made  up  to  at  least  the  sum  of  two  hundred  thousand  dollars;  and  in 
case  such  corporation,  after  such  requisition,  shall  fail  to  make  up  its 
capital  to  at  least  said  amount  of  two  hundred  thousand  dollars  as 
therein  directed,  said  special  reserve  fund  shall  still  be  held  as  security 
and  liable  for  any  and  all  losses  occurring  upon  policies  of  such  corpo- 
ration after  such  conflagration. 

Section  1912  is  referred  to  in  section  1909. 

Restoration  of  capital. 

Section  1913.  If  at  any  time  after  said  special  reserve  fund  shall 
have  been  set  apart  by  any  corporation  it  shall  appear  upon  examina- 
tion by  the  commissioner  of  insurance  that  the  capital  of  such  corpora- 
tion has,  without  the  occurrence  of  any  such  extensive  conflagration, 
become  impaired  so  that  he  shall  order  a  call  upon  the  stockholders  to 
make  up  such  impairment,  the  board  of  directors  may  either  require 
the  necessary  payment  by  the  stockholders  or  at  their  option  apply  for 
that  purpose  so  much  of  said  special  reserve  fund  as  will  make  such 
impairment  good. 

Section  1913  is  referred  to  in  section  1909. 

Scope  of  chapter. 

Section  1914.  All  fire  or  fire  and  inland  navigation  or  transportation 
insurance  companies  organized  under  any  law  of  this  state  shall  be 
subject  to  all  the  provisions  of  this  chapter  properly  applicable  thereto, 
except  that  their  capitals  may  continue  of  the  amount  and  character 
provided  by  their  respective  charters  during  the  term  authorized  by 
such  charters,  and  their  investments  may  remain  as  prescribed  by 
their  charters,  and  they  shall  enjoy  any  peculiar  privileges  and  powers 
given  in  their  charters  not  inconsistent  with  this  chapter. 


REINSURANCE  CORPORATIONS 

Organization  and  admission;  fees  and  taxes. 
Section  1914a.  Any  number  of  residents  of  this  state,  not  less  than 
nine,  may  form  a  corporation  for  the  purpose  of  transacting  the  busi- 
ness of  reinsurance;  such  reinsurance  company  shall  transact  business 
only  with  authorized  insurance  companies  and  not  through  agents,  and 
such  reinsurance  may  include  all  classes  and  kinds  of  insurance  per- 
mitted by  the  statutes,  provided,  however,  that  any  reinsurance  com- 
pany, organized  or  admitted  to  transact  more  than  one  class  or  kind  of 
reinsurance,  shall  be  required  to  have  an  aggregate  capital  equal  to 
the  capital  now  required  by  law  for  each  kind  or  class  of  insurance,  and 
shall  be  required  to  hold  reserves  in  the  same  amount  and  manner  as 
now  required  for  each  such  kind  or  class  of  insurance  which  by  the 
provisions  of  its  charter,  it  is  authorized  to  transact;  such  reinsurance 
bo  incorporated,  and  foreign  reinsurance  companies  may  be  admitted  to 
transact  business  in  this  state,  in  the  same  manner  as  fire,  life,  casualty 


1915  40  Ch.  89 

and  surely  corporations  are  now  provided  for  and  shall  comply  with 
the  same  laws  regulating  such  corporations  so  far  as  the  same  may  be 
applicable.  Such  reinsurance  company  shall  pay  the  same  fees  and 
taxes  required  to  be  paid  by  the  fire  insurance  companies,  and  shall 
within  the  month  of  January  of  each  year,  file  an  annual  statement  of 
its  business  with  the  department  of  insurance,  showing  its  condition 
on  the  thirty-first  day  of  December  of  the  preceding  year. 


INSURANCE    CORPORATIONS   OF   OTHER    STATES   AND 
COUNTRIES 

Admission  of  foreign  companies;  conditions. 
Section  1915.  1.  No  company  incorporated  under  the  laws  of  any 
other  state  or  of  any  territory  or  of  any  foreign  government  or  other 
insurer  having  its  home  outside  of  this  state  shall,  directly  or  indirectly, 
take  risks  or  transact  any  business  of  insurance  in  this  state  except 
upon  compliance  with  and  maintenance  of  the  following  requirements: 

(a)  If  a  stock  company,  it  shall  be  possessed  of  an  actual  paid-up 
cash  capital  equal  to  that  required  of  like  companies  organized  under 
the  laws  of  this  state. 

(b)  Mutual  companies  may  be  admitted  subject  to  the  same  require- 
ments as  to  solvency  and  the  same  limitations  as  to  expenses  as  like 
companies  of  this  state. 

(c)  A  Lloyds  association,  whereby  each  associate  underwriter  be- 
comes liable  for  a  proportionate  part  of  the  whole  amount  insured  by  a 
policy,  may  be  admitted  to  transact  insurance,  other  than  life  insurance, 
in  the  state,  upon  the  same  terms  and  conditions  as  insurance  com- 
panies of  other  states  of  the  United  States.  (2)  No  capital  stock  shall 
be  required.  (3)  Each  alien  underwriter  shall  keep  and  maintain  on 
deposit  at  all  times  with  the  attorney  or  attorneys  in  fact  for  such 
Lloyds  association  licensed  in  this  state,  a  sum  in  cash  or  in  securities 
mentioned  in  section  1903,  equal  to  three  times  the  maximum  amount 
assured  by  such  underwriter  on  any  single  risk,  or  in  lieu  thereof  the 
Lloyds  association  may  comply  with  subsection  4  of  this  section. 
(4)  No  underwriter  shall  assure  any  liability  or  any  single  risk  in  this 
state  (excluding  reinsurance  authorized  by  the  laws  of  this  state)  in 
excess  of  ten  per  centum  of  the  net  worth  of  such  underwriter.  (5)  A 
statement  of  such  limit  of  single  risk  and  of  liability,  and  of  such  net 
worth  with  the  names,  addresses  and  occupations  of  all  individual  un- 
derwriters shall  be  filed  with  the  application  for  admission,  and  with 
each  annual  statement  and  oftener  as  required  by  the  commissioner. 

(d)  Individual  firms  and  corporations  who  make  contracts  of  in- 
surance among  themselves  on  their  own  property  or  risks  on  the  recip- 
rocal or  interinsurance  plan,  shall  not  be  required  to  act  through  a 
resident  agent  or  use  the  standard  fire  policy,  but  any  contract  or 
policy  Insuring  against  loss  by  fire  shall  contain  in  substance  the  pro- 
visions of  the  standard  fire  policy. 


Ch.  89  41  1915—3 

Removal  of  cause;    service  of  process. 

2.  (a)  Any  such  company  or  other  insurer  shall  first  file  a  written 
instrument,  duly  executed,  declaring  that  it  desires  to  transact  the 
business  of  insurance  in  this  state  and  that  it  will  accept  a  license 
therefor  according  to  the  laws  of  this  state,  which  shall  cease  and 
terminate  in  case  such  insurer  shall  remove  or  make  application  to 
remove  into  any  court  of  the  United  States  any  action  or  proceeding 
commenced  in  any  court  of  this  state  upon  a  claim  or  cause  of  action 
arising  out  of  any  business  or  transaction  done  therein,  or  in  case  it 
shall  violate  or  fail  to  comply  with  any  provision  of  law  applicable  to 
such  insurer,  or  in  case  its  capital  shall  be  impaired  to  the  extent  of 
twenty  per  cent,  and  shall  not  be  made  good  within  such  time  as  the 
commissioner  of  insurance  shall  require,  if  such  commissioner  shall, 
in  either  case  declare  its  license  revoked  therefor. 

(b)  Such  insurer  shall  also  appoint,  in  writing,  the  commissioner  of 
insurance  and  his  successors  in  office  to  be  its  true  and  lawful  attorney 
upon  whom  all  legal  process  in  any  action  or  proceeding  against  it 
may  be  served,  and  in  such  writing  shall  agree  that  any  legal  process 
against  it  which  is  served  on  said  attorney  shall  be  of  the  same  legal 
force  and  validity  as  if  served  on  the  insurer,  and  that  such  authority 
shall  continue  in  force  so  long  as  there  is  any  liability  outstanding 
against  the  insurer  in  this  state,  whether  the  license  of  such  insurer  to 
do  business  in  this  state  shall  remain  in  force  or  shall  be  revoked  or 
otherwise  terminated.  A  copy  of  such  writing,  duly  certified,  shall  be 
filed  in  the  office  of  the  commissioner,  and  copies  certified  by  him 
shall  be  deemed  sufficient  evidence  thereof. 

(c)  Service  upon  such  attorney  shall  be  deemed  sufficient  service 
for  all  purposes  upon  the  principal,  and  shall  be  as  effectual  for  all 
purposes  as  though  made  upon  a  corporation  or  other  insurer  existing 
under  the  laws  of  this  state.  The  service  of  such  process  shall  be  made 
by  leaving  duplicate  copies  thereof  in  the  hands  or  office  of  the  com- 
missioner of  insurance  and  paying  to  him  for  the  use  of  the  state  a 
fee  of  two  dollars.  A  certificate  by  the  commissioner  of  insurance 
showing  such  service  and  attached  to  the  original  or  a  third  copy  of 
such  process  presented  to  him  for  that  purpose  shall  be  sufficient  evi- 
dence thereof. 

(d)  A  record  shall  be  kept  by  the  commissioner  showing  the  day 
and  hour  when  any  such  process  has  been  so  served.  He  shall  also 
immediately  forward  by  mail  a  copy  of  such  process  to  the  secretary 
or  attorney  in  fact  of  the  corporation  or  other  insurer  upon  whom 
service  shall  be  so  made,  or  in  case  of  a  corporation  or  other  insurer 
from  a  foreign  country  such  copy  shall  be  forwarded  to  the  resident 
manager  or  attorney  in  fact,  if  any,  in  this  country. 

Copy  of  charter  and  statement. 

3.  It  shall  file  in  the  office  of  said  commissioner  a  copy  of  its  charter, 
duly  certified  by  its  secretary,  together  with  a  statement  verified  by 
the  oath  of  the  president,  vice  president  or  other  chief  officer  and  of 
the  secretary,   containing  the   name  of  the  corporation,    place   where 


1915—6  42  Ch.  89 

located,  amount  of  its  capital  stock,  and  a  detailed  statement  of  its 
assets  showing  the  amount  of  cash  on  hand  and  in  bank,  the  amount 
of  real  estate,  and  how  much  of  the  same  is  incumbered  by  mortgage 
or  otherwise,  the  number  of  shares  of  stock  of  every  kind  owned  by  it, 
the  par  and  market  value  of  the  same,  the  amount  loaned  on  bond  and 
mortgage  and  other  securities,  stating  the  kind  and  amount  loaned 
on  each,  the  estimated  value  of  the  whole  amount  of  such  securities 
and  all  its  other  assets  or  property  and  the  value  thereof;  also  showing 
the  amount  of  its  indebtedness,  the  amount  of  losses  adjusted  and  un- 
paid, the  amount  incurred  and  in  process  of  adjustment,  the  amount 
resisted  as  illegal  or  fraudulent  and  all  other  claims  existing  against 
it;  and  a  copy  of  the  last  report,  if  any,  made  under  law  of  the  state  by 
which  it  was  incorporated. 

Minimum  limitation  of  capital;    deposit;    war. 

4.  No  such  corporation  organized  under  the  laws  of  any  foreign 
government  shall  take  risks  in  this  state  unless  it  has  a  cash  capital 
of  two  hundred  thousand  dollars,  and  shall  have  made  a  deposit  with 
the  treasurer  of  this  state,  or  with  the  proper  officer  of  some  other 
state  of  the  United  States  of  not  less  than  two  hundred  thousand 
dollars  in  securities  authorized  by  law  for  investments  of  the  capital 
by  fire  insurance  corporations,  in  trust  for  the  benefit  of  its  policy- 
holders in  the  United  States;  and  no  policy  issued  by  such  company  to 
any  citizen  of  this  state  shall  be  invalidated  by  the  occurrence  of 
hostilities  between  the  government  of  the  United  States  and  the  gov- 
ernment under  the  laws  of  which  it  was  organized. 

Copy  of  charter  and  annual  reports. 

5.  Every  such  foreign  insurance  company  shall,  before  admission  to 
do  business  in  this  state,  furnish  to  the  insurance  commissioner  a  copy 
of  its  charter  or  articles  of  association,  of  its  last  annual  report  made  in 
the  country  where  it  was  organized,  and  the  certificate  of  the  officer 
holding  in  trust  said  deposit  of  two  hundred  thousand  dollars,  stating 
the  manner  in  which  the  same  is  invested  and  the  purposes  for  which 
the  same  is  held;  and  it  shall  furnish  annually  to  the  insurance  com- 
missioner a  statement  of  the  condition  of  its  affairs  in  the  United  States, 
in  such  form  as  he  shall  require. 

"Capital"  defined. 

6.  The  capital  of  such  foreign  insurance  company  shall,  for  all  the 
purposes  of  the  insurance  laws  of  this  state,  be  the  aggregate  value  of 
its  money  or  securities  deposited  as  aforesaid,  and  all  sums  loaned  on 
real  estate  security  in  any  state  in  the  United  States,  in  conformity 
with  the  laws  of  such  state  providing  for  the  investment  of  the  assets 
of  insurance  companies  therein,  and  all  other  assets  In  the  United 
States  in  which  fire  insurance  companies  may  legally  invest;  provided, 
that  such  real  estate  securities  and  assets  shall  be  held  in  the  United 
States  by  trustees  who  are  citizens  of  the  United  States  approved  by 
the  insurance  commissioner,  for  the  benefit  of  all  its  policyholders  and 
creditors  in  the  United  States,  after  making  the  same  deduction  from 


Ch.  89  43  1915m 

such  aggregate  value  for  losses  and  liabilities  in  the  United  States,  and 
for  unearned  premiums  upon  risks  therein  not  expired,  as  is  authorized 
or  required  by  the  laws  of  this  state,  or  by  the  regulations  of  its  insur- 
ance department,  with  respect  to  fire  insurance  companies  organized 
under  the  laws  of  this  state.  Such  capital  shall  never  be  less  than 
that  required  of  domestic  companies  for  the  transaction  of  the 
same  kind  or  kinds  of  insurance. 

Copy  of  resolution  appointing  trustees;    examination. 

7.  The  trustees  referred  to  in  subsection  6  of  section  1915  shall  be 
appointed  by  the  directors  of  such  company,  and  a  certified  copy  of  the 
resolution  by  which  they  are  appointed  and  of  the  deed  of  trust  shall 
be  filed  in  the  office  of  the  insurance  commissioner;  and  he  may 
examine  such  trustees  or  the  agents  of  such  company,  under  oath,  and 
its  assets,  books,  and  accounts,  in  the  same  manner  as  he  may  examine 
the  oflicers,  agents,  assets,  books,  and  accounts,  of  any  company 
authorized  to  do  fire  insurance  business  in  this  state. 

Referred  to  in  2637. 

Interlnsurance. 

Section  1915m.  1.  Individuals,  partnerships,  and  corporations  of 
this  state,  hereby  designated  subscribers,  are  authorized  to  exchange 
reciprocal  or  interlnsurance  contracts  with  each  other,  or  with  the 
individuals,  partnerships,  and  corporations  of  other  states  and  coun- 
tries, providing  indemnity  among  themselves  from  any  loss  which  may 
be  insured  against  under  other  provisions  of  the  laws  excepting  life 
insurance. 

2.  Such  contracts  may  be  executed  by  an  attorney,  agent  or  other 
representative  herein  designated  attorney  duly  authorized  and  acting 
for  such  subscribers.  A  corporation  duly  authorized  by  its  charter  so 
to  do  may  act  as  such  attorney. 

3.  Such  subscribers  so  contracting  among  themselves  shall,  through 
their  attorney,  file  v/ith  the  commissioner  of  insurance  a  declaration 
verified  by  the  oath  of  such  attorney,  or  where  such  attorney  is  a  cor- 
poration, by.  the  oath  of  its  duly  authorized  officers,  setting  forth: 

(a)  The  name  of  the  attorney  and  the  name  or  designation  under 
which  such  contracts  are  issued  which  name  or  designation  shall  not 
be  so  similar  to  any  name  or  designation  adopted  by  any  attorney  or  by 
an  insurance  organization  in  the  United  States  prior  to  the  adoption 
of  stich  name  or  desgnation  by  the  attoroney,  as  to  confuse  or  deceive. 

(b)  The  location  of  the  principal  office. 

(c)  The  kind  or  kinds  of  insurance  to  be  effected. 

(d)  A  copy  of  each  form  of  policy,  contract  or  agreement  under  or 
by  which  insurance  is  to  lie  effected. 

(e)  A  copy  of  the  form  of  power  of  attorney  under  which  such  in- 
surance is  to  be  effected. 

(f)  That  applications  have  been  made  for  indemnity  or  insurance 
upon  at  least  one  hundred  separate  risks  aggregating  not  less  than  one 
and  one-half  million  dollars  represented  by  executed  contracts  or  bona 
fide  applications  to  become  concurrently  effective;   or  in  case  of  em- 


1915m  44  Ch.  89 

ployers'  liability  or  workmen's  compensation  insurance,  covering  a 
total  pay  roll  of  not  less  than  two  and  one-half  million  dollars. 

(g)  That  there  is  in  the  possession  of  such  attorney  assets  amount- 
ing to  not  less  than  the  sum  required  by  subsection  6  of  this  section. 

(h)  A  financial  statement  in  form  prescribed  for  the  annual  state- 
ment. 

(i)  The  instrument  authorizing  service  of  process  as  provided  for 
in  this  section. 

4.  Concurrently  with  the  filing  of  the  declaration  provided  for  by 
the  terms  of  subsection  3  of  this  section,  the  attorney  shall  file  with 
the  commissioner  of  insurance  an  instrument  in  writing  executed  by 
him  for  said  subscribers,  conditioned  that  upon  the  issuance  of  certifi- 
cate of  authority  provided  for  in  subsection  10  of  this  section,  service 
of  process  may  be  had  upon  the  commissioner  of  insurance  in  all  suits 
in  this  state  arising  out  of  such  policies,  contracts,  or  agreements, 
which  service  shall  be  valid  and  binding  upon  all  subscribers  exchang- 
ing at  any  time  reciprocal  or  interinsurance  contracts  through  such 
attorney.  Three  copies  of  such  process  shall  be  served  and  the  com- 
missioner of  insurance  shall  file  one  copy,  forward  one  copy  to  said 
attorney,  and  return  one  copy  with  his  admission  of  service. 

5.  There  shall  be  filed  with  the  commissioner  of  insurance,  by  such 
attorney,  a  statement,  under  the  oath  of  such  attorney,  showing  the 
maximum  amount  of  indemnity  upon  any  single  risk,  and  such  attorney 
shall,  whenever  and  as  often  as  the  same  shall  be  required,  file  with 
the  commissioner  of  insurance  a  statement  verified  by  his  oath  to 
the  effect  that  he  has  examined  the  commercial  rating  of  such  sub- 
scribers as  shown  by  the  reference  book  of  a  commercial  agency  having 
at  least  one  hundred  thousand  subscribers,  and  that  from  such  examina- 
tion, or  from  other  information  in  his  possession,  it  appears  that  no 
subscriber  has  assumed  on  any  single  risk  an  amount  greater  than 
ten  per  cent  of  the  net  worth  of  such  subscriber. 

6.  The  attorney  in  fact  shall  have  on  hand  at  all  times  assets  in 
cash  or  securities  authorized  by  the  laws  of  the  state  in  which  the 
principal  office  of  the  exchange  is  located  for  the  investment  of  funds 
of  insurance  companies  doing  the  same  kind  of  business  an  amount 
equal  to  one  hundred  per  cent  of  the  net  unearned  premiums  or  deposit 
collected  and  credited  to  the  account  of  subscribers,  or  fifty  per  cent  of 
the  net  annual  advance  premium  or  deposits  collected  and  credited  to 
the  account  of  subscribers  on  policies  having  one  year  or  less  to  run, 
and  pro  rata  on  those  for  a  longer  period.  In  addition  to  the  foregoing 
sum  there  shall  be  on  hand  at  all  times  in  cash  or  such  securities  assets 
equal  to  all  liabilities  on  account  of  outstanding  losses  and  other  ac- 
crued obligations  of  such  exchange.  Net  premiums  or  deposits  as  used 
in  this  section  shall  be  construed  to  mean  the  advance  payments  made 
by  subscribers  before  deducting  therefrom  the  amount  provided  in  the 
subscriber's  agreement  for  expenses,  provided,  however,  that  insurance 
organizations  subject  to  the  provisions  of  this  section  collecting  ex- 
pense funds  separate  from  other  premiums  or  deposits  shall  carry  such 
a  reasonable  reserve  on  such  expense  items  as  may  be  required  by  the 


Ch.  89  45  1915m 

commissioner  of  insurance  in  accordance  with  section  1899.  If  at  any- 
time the  a.^sets  on  hand  are  less  than  the  foregoing  requirements  or 
less  than  ore  hundred  thousand  dollars,  whichever  is  the  greater,  when 
the  attorney  in  fact  is  exchanging  contracts  covering  employers'  liabil- 
ity or  workmen's  compensation  insurance,  the  subscribers  or  their  at- 
torney in  fact  for  them  shall  make  up  the  deficiency  within  thirty  days 
after  notice  from  the  commissioner  of  insurance  so  to  do.  Whenever 
such  assets  are  less  than  the  amount  above  required,  or  less  than  fifty 
thousand  dollars,  whichever  is  the  greater,  if  the  attorney  in  fact  is 
exchanging  contracts  other  than  those  covering  employers'  liability  or 
workmen's  compensation  insurance,  the  subscribers  or  their  attorney 
in  fact  for  them  shall  make  up  the  deficiency  within  thirty  days  after 
notice  from  the  commissioner  of  insurance  so  to  do.  No  obligation  for 
borrowed  money  shall  be  incurred  on  behalf  of  any  exchange. 

7.  Such  attorney  shall,  within  the  time  limited  for  filing  the  annual 
statement  by  insurance  companies  transacting  the  same  kind  of  busi- 
ness, make  a  report  to  the  commissioner  of  insurance  for  each  calen- 
dar year  showing  the  financial  condition  of  affairs  at  the  office  where 
such  contracts  are  issued,  and  shall  furnish  such  additional  information 
and  reports  as  may  be  required;  provided,  however,  that  such  attorney 
shall  not  be  required  to  furnish  the  names  and  addresses  of  any  sub- 
scribers nor  the  loss  ratio.  The  business  affairs  and  assets  of  such 
organizations  shall  be  subject  to  examination  by  the  commissioner  of 
insurance. 

8.  Any  corporation  now  or  hereafter  organized  under  the  laws  of 
this  state  shall,  in  addition  to  the  rights,  powers  and  franchises  speci- 
fied in  its  articles  of  incorporation,  have  full  power  and  authority  to 
exchange  insurance  contracts  of  the  kind  and  character  herein  men- 
tioned. The  right  to  exchange  such  contracts  is  hereby  declared  to 
be  incidental  to  the  purposes  for  which  such  corporations  are  or- 
ganized and  as  much  granted  as  the  rights  and  powers  expressly  con- 
ferred. 

9.  Any  attorney  who  shall,  except  for  the  purpose  of  applying  for  a 
certificate  of  authority  as  herein  provided,  exchange  any  contracts  of 
indemnity  of  the  kind  and  character  specified  in  this  section,  or  directly 
or  indirectly  solicit  or  negotiate  any  applications  for  same  without 
first  complying  with  the  foregoing  provisions,  shall  be  deemed  guilty  of 
a  misdemeanor,  and  upon  conviction  thereof  shall  be  subject  to  a  fine 
of  not  less  than  one  hundred  dollars,  nor  more  than  one  thousand 
dollars. 

10.  Each  attorney,  by  or  through  whom  are  issued  any  policies  of  or 
contracts  for  indemnity  of  the  character  referred  to  in  this  section, 
shall  procure  from  the  commissioner  of  insurance  annually  a  certificate 
of  authority  stating  that  all  the  requirements  of  this  section  have  been 
complied  with,  and  upon  such  compliance  and  the  payment  of  the  fees 
required  by  this  section,  the  commissioner  of  insurance  shall  issue  such 
certificate.  In  case  of  a  breach  of  any  of  the  conditions  imposed  by 
law,  the  commissioner  of  insurance  may  revoke  the  certificate  of  au- 
thority issued  hereunder. 


1916  46  Ch.  89 

11.  In  lieu  of  all  other  taxes,  liceuses,  or  fees  whatever,  state  or 
local,  such  attorney  shall  pay  annually  on  account  of  the  transaction 
of  such  business  in  this  state,  a  filing  fee  of  twenty-five  dollars,  and 
a  license  fee  of  two  per  cent  upon  the  gross  premiums  or  deposits 
during  the  preceding  calendar  year,  deducting  all  amounts  returned  to 
subscribers  or  credited  to  their  accounts  other  than  for  losses,  except 
that  the  fee  shall  be  at  the  rate  of  two  and  three-eighths  per  cent  upon 
the  same  basis  for  the  insurance  mentioned  in  subsection  1  of  section 
1897,  and  that  from  such  latter  fees  there  shall  be  set  apart  the  fire 
department  dues  and  the  fire  marshal  tax  mentioned  in  sections  1926 
and  1946n,  respectively. 

12.  The  attorney  in  fact  may  purchase  reinsurance  upon  the  risk  of 
any  subscriber  at  the  exchange.  No  attorney  in  fact  shall,  however, 
grant  reinsurance  upon  any  risk  or  risks  insured  by  any  other  insurance 
carrier.  Any  exchange  operating  in  this  state  may  however  consolidate 
with  or  reinsure  its  entire  business  in  another  exchange.  If  the  prin- 
cipal office  of  any  exchange  entering  into  such  contract  of  consolidation 
or  reinsurance  is  located  in  this  state  the  contract  for  such  consoli- 
dation or  reinsurance  shall  be  submitted  to  and  approved  by  the  com- 
missioner of  insurance  of  this  state  before  being  effective. 

13.  Failure  of  the  attorney  to  file  the  appointment  required  in  sub- 
section 4  of  section  1915m  or  failure  on  the  part  of  any  subscriber  to 
authorize  the  attorney  to  do  so  shall  not  invalidate  any  service  made 
by  serving  upon  the  commissioner  of  insurance.  By  accepting  a  license 
to  transact  business  in  this  state  every  such  attorney  in  fact  and  each 
of  the  subscribers  shall  be  held  to  have  appointed  the  commissioner 
of  insurance  the  agent  and  attorney  for  each  of  them  to  accept  service 
of  summons  or  other  process  and  such  authority  shall  continue  so  long 
a3  any  liability  remains  unsatisfied  against  any  of  such  members  on  any 
contract  or  contracts  issued  by  such  attorney.  Any  judgment  recovered 
in  any  action  where  the  summons  or  other  process  has  been  served 
upon  the  commissioner  of  insurance  shall  be  binding  upon  each  of  the 
subscribers  at  such  exchange  the  same  as  if  personal  service  was  had 
upon  each  of  such  subscriTjers. 

14.  Subdivision  (g)  of  subsection  3  and  subsection  6  of  section 
1915m  shall  not  apply  to  any  attorney  in  fact  or  subscriber  holding  a 
certificate  of  authority  from  the  commissioner  of  insurance  of  this  state 
when  this  act  is  passed  until  the  first  day  of  July,  1917. 

15.  Except  as  herein  provided,  no  law  relating  to  fire  insurance 
shall  apply  to  reciprocal  or  interinsurance  contracts  or  the  execution 
thereof. 

Issue  and  expiration  of  license. 
Section  1916.  1.  The  cbmmissioner  of  insurance  shall,  upon  being 
satisfied  that  any  such  insurance  corporation  has  fully  complied  with 
all  provisions  of  law  applicable  thereto,  and  that  the  interests  of  the 
people  of  the  state  are  not  jeopardized  by  dealing  with  such  corpora- 
tion, deliver  to  such  corporation  a  license  to  transact  business  in  this 
state  as  prescribed  in  these  statutes,  and  shall  renew  the  same  from 


Ch.  89  47  1916—5 

year  to  year  so  long  as  such  corporation  shall  desire  to  do  business  In 
this  state,  and  shall  have  complied  with  all  of  the  laws  thereof,  and  its 
capital,  securities,  and  investments  remain  as  required  by  law,  and 
shall  give  to  every  agent  of  such  corporation  a  certificate  that  such 
corporation  has  complied  with  all  the  provisions  of  law  and  is  author- 
ized to  transact  business  in  this  state,  which  shall  continue  in  force 
unless  sooner  revoked  in  case  of  fire,  marine,  or  inland  navigation 
or  transportation  and  mutual  hail  corporations,  until  the  thirty-first 
day  of  January  next  after  the  date  thereof,  and  in  case  of  life  or  acci- 
dent corporations  until  the  first  day  of  March  next  after  the  date  there- 
of, and  shall  be  annually  renewed. 

Supervision  of  foreign  corporations. 

2.  The  commissioner  of  insurance  shall  have  the  same  supervision 
and  make  the  same  examination  of  the  business  and  affairs  of  every 
foreign  insurance  corporation  doing  business  in  this  state,  as  of  do- 
mestic insurance  corporations  doing  the  same  kind  of  business,  and  of 
its  assets,  books,  accounts,  and  general  condition.  Every  such  foreign 
corporation  and  its  agents  and  officers  shall  always  be  subject  to  and 
be  required  to  make  the  same  statements  and  answer  the  same  in- 
quiries and  be  subject  to  tlie  same  examinations,  and,  in  case  of  default 
therein,  to  the  same  penalties  and  liabilities  as  domestic  insurance  cor- 
porations doing  the  same  kind  of  business,  or  any  of  the  agents  or 
officers  thereof,  are  or  may  be  liable  to  under  the  laws  of  this  state  or 
the  regulations  of  the  insurance  department. 

Visitation  of  foreign  corporations. 

3.  The  commissioner  may,  whenever  he  deems  it  necessary,  either 
in  person  or  by  a  proper  person  appointed  by  him,  repair  to  the  general 
office  of  such  foreign  corporation,  wherever  the  same  may  be,  and 
make  an  investigation  and  examination  of  its  affairs  and  conditions. 
He  may  cancel  and  revoke  the  certificate  of  any  such  foreign  corpora- 
tion refusing  or  unreasonably  neglecting  to  comply  with  the  provisions 
of  this  section  or  to  allow  the  examination  herein  provided  for  to  be 
made,  and  prevent  such  corporation  from  further  continuance  in  busi- 
ness in  this  state. 

Parity  with  domestic  companies. 

4.  A  foreign  insurance  corporation  may  transact  in  this  state  only 
such  kinds  of  business  as,  under  the  laws  of  this  state,  a  like  domestic 
insurance  corporation  is  authorized  to  transact. 

Authority  limited  by  certificate. 

5.  No  such  corporation  shall  transact  any  business  in  this  state  not 
specified  in  the  certificate  of  authority  granted  by  the  commissioner 
of  insurance. 

Section  1916  is  referred  to  in  section  20.55  C3). 


1919  48  Ch.  89 

Fee;  conditions;    revocation  of  license. 
Section  1917.     1.  No  insurance  corporation  shall  transact  any  insur- 
ance business  in  this  state  without  first  having  paid  the  license  fees 
and  obtained  the  license  therefor  as  required  by  law. 

2.  (a)  If  any  such  corporation  shall  remove  or  make  application  to 
removo  into  any  court  of  the  United  States  any  action  or  proceeding 
commenced  in  any  court  of  this  state  upon  a  claim  or  cause  of  action 
arising  out  of  any  business  or  transaction  done  in  this  state;  or  (b) 
if  it  shall  violate  or  fail  to  comply  with  any  provision  of  law  applicable 
thereto;  or  (c)  in  case  its  capital  shall  be  impaired  to  the  extent  of 
twenty  per  cent  and  shall  not  be  made  good  within  such  time  as  the 
commissioner  of  insurance  shall  require,  according  to  law;'(d)  it  shall 
be  the  imperative  duty  of  the  commissioner  to  revoke  any  and  every 
authority,  license  or  certificate  granted  to  such  corporation  or  any 
agent  thereof  to  transact  any  business  in  this  state,  and  no  such  cor- 
poration or  agent  thereof  shall  thereafter  transact  any  business  of  in- 
surance in  this  state  until  again  duly  licensed. 

3.  In  case  such  revocation  shall  be  made  because  of  the  removal  of 
any  action  to  any  court  of  the  United  States  no  renewal,  license  or 
certificate  of  authority  shall  be  granted  to  such  corporation  for  three 
years  after  such  revocation. 

4.  Whenever  any  such  license  shall  be  revoked  the  commissioner 
shall  give  notice  of  such  revocation  by  mail  to  every  agent  of  such 
corporation  who  shall  have  obi  rained  any  certificate  of  authority  there- 
for and  shall  also  publish  notice  thereof  in  the  oflScial  state  paper. 

License  revocable  as  to  any  one  kind  of  insurance. 

5.  If  an  insurance  company  shall  hold  a  certificate  of  authority  to 
transact  fnore  than  one  kind  of  insurance,  the  commissioner  shall  have 
power  to  annul  or  revoke  such  certificate  as  to  one  or  more  kinds  of  in- 
surance authorized  therein  for  the  same  cause  and  in  the  same  manner 
that  he  is  authorized  to  annul  or  revoke  such  certificate  for  all  kinds 
of  insurance  authorized  therein. 

Withdrawal  of  securities.  , 

Sectiox  1918.  Whenever  any  such  foreign  corporation  shall  elect  to 
discontinue  business  in  this  state  and  shall  have  risks  unexpired  on 
property  insured  therein  it  shall,  before  withdrawing  its  bonds  or  other 
securities  deposited  with  the  treasurer,  reinsure  in  some  good  and 
solvent  corporation  authorized  to  transact  business  in  this  state  all 
such  unexpired  risks  to  the  satisfaction  of  the  insured  and  the  com- 
missioner of  insurance,  and  when  so  reinsured  the  said  commissioner 
shall  certify  the  fact  to  the  treasurer,  who  shall  thereupon,  and  not 
otherwise,  surrender  and  deliver  its  bonds  and  other  securities  in 
his  custody. 

Service  of  process. 
Section  1919.     If  the  license  of  any  such  corporation,  not  organized 
under  any  other  law  of  this  state,  shall  be  revoked  or  it  shall  cease 
to  transact  business  in  this  state  the  attorney  last  appointed  and  the 


Ch.  89  49  1919d 

agents  last  designated  as  acting  as  such  for  it  shall  continue  attorney 
and  agents  for  the  purpose  of  serving  process  for  commencing  actions 
upon  any  policy  or  liability  incurred  or  contracted  in  this  state  while  it 
transacted  business  therein  so  long  as  any  such  liability  shall  exist. 

Agents  to  be  residents;    exceptions;    penalty. 
Section  1919a.     1.  No  policy  of  insurance  shall  be  issued  or  delivered 
in  this  state  by  any  company,  except  through  an  agent  who  shall  be  a 
resident  of  this  state  and  hold  a  certificate  of  authority  under  section 
1976,  for  the  kind  of  insurance  effected  by  such  policy. 

2.  In  case  of  fire  insurance,  the  agent  shall  countersign  and  enter 
the  policy  in  a  permanent  record  to  be  kept  by  him  for  that  purpose. 
Such  agent  shall  be  paid  the  commission  on  the  policy. 

3.  The  books  of  every  person  transacting  or  purporting  to  transact 
the  business  of  an  insurance  agent  shall  at  all  times  be  open  to  the 
inspection  of  the  commissioner  of  insurance,  his  deputy  or  examiners, 
and  a  refusal  to  permit  such  inspection  shall  be  prima  facie  evidence 
of  a  violation  of  this  section. 

4.  This  section  shall  not  prevent  any  insurance  placed  in  violation 
thereof  taking  effect. 

5.  Any  company  or  person  soliciting  or  placing  insurance  without 
complying  with  this  section  shall,  in  addition  to  other  penalties  pro- 
vided by  law,  be  liable  personally  upon  such  policy  or  contract  of  in- 
surance to  the  same  extent  as  the  company  issuing  the  same. 

6.  This  section  shall  not  apply  to: 

(a)  Policies  issued  directly  from  the  home  office  of  any  company 
organized  under  the  laws  of  this  state. 

(b)  Policies  covering  property  in  transit  while  in  the  possession  or 
custody  of  any  common  carrier,  or  the  rolling  stock  or  other  property 
of  any  common  carrier  used  and  employed  by  it  as  a  common  carrier 
of  freight  or  passengers. 

(c)  Policies  issued  directly,  by  any  mutual  company  or  any  associa- 
tion doing  business  on  the  interinsurance  or  reciprocal  plan,  on  which 
no  commissions  are  paid,  except  to  a  home  office  manager  or  an  attor- 
ney in  fact  for  such  company  or  association,  as  specifically  authorized 
by  the  insured. 

7.  Any  company  or  agent  violating  this  section  shall  be  subject  to 
the  penalty  provided  by  subsection  5,  of  section  1955o. 

Section  WlOa  is  referred  to  in  sections  1919g,   1919m. 
Sections  1919b  and  1919c.     [Repealed  by  ch.  637,  1913]. 

Report  concerning  reinsurance;  effect  of  not  making  report. 
Section  1919d.  Every  fire  insurance  company  or  association  shall 
annually  and  at  such  other  times  as  the  commissioner  of  insurance  may 
require,  in  addition  to  all  returns  now  by  law  required  of  it  or  its 
agents  or  managers,  make  a  return  to  the  commissioner  of  insurance 
in  such  form  and  detail  as  may  be  prescribed  by  him,  of  all  reinsur- 
ance or  cessions  of  risk  or  liability  contracted  for  or  effected  by  it, 


1919f  50  Ch.  89 

whether  by  issue  of  policy,  entry  on  bordereau,  or  general  participation 
agreement,  or  by  excess  loss  reinsurance  or  in  any  other  manner  what- 
soever, upon  property  located  in  this  state,  or  covering,  whether  speci- 
fied or  otherwise,  any  risk  or  liability  upon  property  so  located,  such 
return  to  be  certified  by  the  oath  of  its  president  and  secretary,  if  a 
company  or  association  of  one  of  the  United  States,  and,  if  a  company 
or  association  of  a  foreign  country,  by  the  oath  of  its  managers  in  the 
United  States  as  to  such  reinsurance  or  cessions  effected  through  its 
branch  office  in  the  United  States,  and  by  the  oath  of  its  president  and 
secretary,  or  by  officers  corresponding  thereto,  at  its  home  office 
wherever  located,  as  to  reinsurance  as  aforesaid  contracted  for  or 
effected  through  the  foreign  office.  The  refusal  of  any  such  company 
or  association  to  make  the  returns  herein  required  shall  be  presumptive 
evidence  that  it  is  guilty  of  violating  the  provisions  of  section*  1919b, 
and  shall  subject  it  to  the  penalties  prescribed  and  imposed  by  sections 
1919a  to  1919g,  inclusive. 

Section  1919(1  is  referred  to  in  sec.  1919g.    Compare  sectiOTis  1905, 1919e. 
'Repealed  in  191S. 

Penalty  for  violating  lafw;    nonpayment  of  judgment. 

Sec'Tiox  1919e.  Any  insurance  company  or  association  wilfully  vio- 
lating or  failing  to  observe  and  comply  with  any  of  the  provisions  of 
sections  1919a  to  1919g,  inclusive,  applicable  thereto,  shall  be  subject 
to  and  liable  to  pay  a  penalty  of  five  hundred  dollars  for  each  violation 
thereof  and  for  each  failure  to  observe  and  comply  with  any  of  the 
provisions  of  sections  1919a  to  1919g,  inclusive;  such  penalty  may  be 
collected  and  recovered  in  an  action  brought  in  the  name  of  the  state 
in  any  court  having  jurisdiction  thereof.  Any  insurance  company  or 
association  which  shall  neglect  and  refuse  for  thirty  days  after  judg- 
ment in  any  such  action  to  pay  and  discharge  the  amount  of  such 
judgment  shall  have  its  authority  to  transact  business  in  this  state  re- 
voked by  the  commissioner  of  insurance  and  such  revocation  shall  con- 
tinue for  at  least  one  year  from  the  date  thereof,  nor  shall  any  Insur- 
ance company  or  association  whose  authority  to  transact  business  in 
this  state  shall  have  been  so  revoked,  be  again  authorized  or  permitted 
to  transact  business  herein  until  it  shall  have  paid  the  amount  of  any 
such  judgment  and  shall  have  filed  in  the  office  of  the  commissioner 
of  insurance  a  certificate  signed  by  its  president  or  other  chief  officer 
to  the  effect  that  the  terms  and  obligations  of  the  provisions  of  sections 
1919a  to  1919g,  inclusive,  are  accepted  by  it  as  a  part  of  the  conditions 
of  its  right  and  authority  to  transact  business  in  this  state. 

Referred  to  in  1919g. 

Unauthorized  Insurance;  duty  of  commissioner. 
Section  19l9f.  Any  company  or  person  who  shall  solicit  or  place 
insurance  in  a  fire  insurance  company  not  authorized  to  do  business  In 
this  state  shall,  in  the  event  of  the  failure  of  such  unauthorized  com- 
pany to  pay  any  claim  or  loss  within  the  policy  issued,  be  liable  to  the 
Insured  for  the  amount  thereof  to  the  extent  that  such  company  would 
have  been  liable;    and   such   company   or  agent   shall,  on  satisfactory 


Ch.  89  51  1919m 

proof  of  violation  of  either  of  the  foregoing  provisions  made  to  the 
commissioner  of  insurance,  have  its  or  his  authority  to  transact  busi- 
ness in  this  state  revoked  for  a  period  of  not  less  than  ninety  days, 
and  shall  not  again  be  permitted  to  do  business  herein  until  all  liability 
for  such  violation  shall  be  discharged  and  the  provisions  of  these  stat- 
utes concerning  the  admission  of  foreign  fire  insurance  companies  to  do 
business  in  this  state  be  complied  with.  Whenever  said  commissioner 
shall  receive  notice  of  the  violation  of  any  provision  of  this  section  he 
shall  forthwith  in  person  or  by  his  deputy,  visit  the  office  of  the  com- 
pany or  any  insurance  agent  charged  with  such  violation,  and  demand 
an  inspection  of  the  books  and  records  thereof;  and  any  company  or 
such  agent  refusing  to  permit  such  inspection  shall  be  deemed  guilty 
of  violating  this  section,  and  such  commissioner  shall  enforce  the 
penalties  herein  provided  against  the  same. 
Referred  to  in  1919g. 

Construction  of  foregoing  provisions  concerning  reinsurance. 
Section  1919g.  Nothing  contained  in  sections  1919a  to  1919f,  in- 
clusive, shall  be  construed  as  preventing  any  insurance  company  which 
has  lawfully  issued  a  policy  of  insurance  upon  property  within  this 
state,  from  reinsuring  said  risk  or  any  portion  thereof,  in  any  authorized 
company  without  having  said  policy  of  reinsurance  signed  by  a  local 
agent  in  this  state. 

Surplus   lines,    unauthorized   companies;     agents;     bond;     report; 
penalty. 

Section  1919m.  1.  The  commissioner  of  insurance,  in  consideration 
of  the  yearly  payment  of  fifteen  dollars,  and  in  cities  having  more  than 
one  hundred  thousand  inhabitants,  of  fifty  dollars,  may  issue  to  any 
agent  holding  a  certificate  of  authority  under  section  1976  a  license 
terminating  on  the  thirty-first  day  of  January  next  succeeding,  revo- 
cable at  any  time,  permitting  such  agent  to  act  as  agent  in  procuring 
policies  of  fire  insurance  from  any  corporations,  associations,  partner- 
ships, or  persons,  herein  called  companies,  which  are  not  authorized 
to  do  business  in  this  state. 

2.  Before  any  insurance  shall  be  procured  under  said  license,  there 
shall  be  executed  by  the  agent  an  affidavit  which  shall  be  filed  with 
the  commissioner  within  thirty  days  after  the  date  of  the  policy.  Such 
affidavit  shall  entitle  the  agent  making  it  to  effect  unauthorized  insur- 
ance for  one  year  succeeding  the  date  thereof.  Such  affidavit  shall  set 
forth  that  the  agent  is,  after  diligent  effort,  unable  to  procure  the 
amount  of  insurance  required  to  protect  the  property  described  in  said 
affidavit,  from  the  companies  authorized  and  licensed  to  transact  busi- 
ness in  this  state. 

3.  The  insured  may  in  writing  relieve  the  agent  from  the  personal 
liability  imposed  by  section  1919a,  which  release  shall  affect  all  insur- 
ance written  within  one  year  after  the  date  thereof. 


1920  52  Ch.  89 

4.  The  agent  procuiing  policies  in  any  unauthorized  company  shall 
keep  a  separate  account  thereof,  open  at  all  times  to  the  inspection 
of  the  commissioner,  showing: 

(a)  The  amount  of  such  insurance; 

(b)  The  gross  premiums  charged  thereon; 

(c)  The  return  premiums  on  cancellation; 

(d)  In  what  company  the  insurance  is  placed; 

(e)  Date  of  the  policy; 

(f)  The  term  thereof; 

(g)  A  copy  of  the  form  of  policy;  and 

(h)  Separately,  the  cities,  towns,  and  villages  in  which  the  insured 
property  is  located. 

5.  Such  agent  shall  annually,  before  the  first  day  of  February  in 
each  year,  make  a  report  to  the  commissioner  for  the  preceding  cal- 
endar year  on  such  form  as  prescribed  by  him,  of  the  facts  required 
by  subsection  4,  and  pay  to  the  state  through  the  commissioner  the  tax 
in  the  manner  and  at  the  time  provided  by  section  1211 — 31. 

6.  Each  agent  receiving  such  license  shall,  before  transacting  busi- 
ness thereunder,  execute  and  deliver  to  the  commissioner  a  bond  to 
the  people  of  the  state  in  the  penal  sum  of  one  thousand  dollars,  with 
such  sureties  as  the  commission  shall  approve,  conditioned  that  the 
said  agent  will  faithfully  comply  with  all  the  requirements  of  this 
section. 

7.  In  default  of  the  payment  to  said  commissioner  of  the  tax  herein 
provided  for,  he  may  sue  for  the  same  in  any  court  of  record  of  this 
state. 

8.  Any  violation  of  this  act  shall  subject  the  agent  to  a  revocation 
of  his  license. 


REPORTS 

When  to  be  made;    contents. 

Section  1920.  The  president  or  vice-president  and  secretary  of  each 
fire,  inland  navigation  or  transportation  insurance  corporation,  except 
mutual  fire  insurance  corporations  organized  under  the  laws  of  this 
state  and  licensed  to  do  business  therein,  shall  annually  on  or  before 
February  twentieth,  prepare  and  deposit  in  the  office  of  the  commis- 
sioner of  insurance  a  statement,  verified  by  their  oaths,  of  the  business 
of  the  corporation  during  the  year  and  the  condition  thereof  on  the 
thirty-first  day  of  December  then  next  preceding,  exhibiting  the  fol- 
lowing items: 

First.     The  amount  of  the  capital  stock  of  the  corporation. 

Second.     The  property  or  assets  of  the  corporation,  specifying: 

(1)  The  value,  as  near  as  may  be,  of  the  real  estate  held  by  such 
corporation. 

(2)  The  amount  of  cash  on  hand  in  such  corporation's  office  and 
also  the  amount  deposited  in  bank  to  the  credit  of  such  corporation, 
and  specifying  in  what  bank  or  banks  the  same  is  deposited. 


Ch.  89  53  1920 

(3)  The  amount  of  loans  secured  by  bonds  or  mortgages,  constitut- 
ing the  first  lien  on  real  estate  on  which  there  shall  be  less  than  one 
year's  interest  due  or  owing. 

(4)  The  amount  of  loans  on  which  interest  shall  not  have  been  paid 
within  one  year  previous  to  such  statement. 

(5)  The  amount  due  the  corporation  on  which  judgments  have  been 
obtained. 

(6)  The  amount  of  stocks  of  this  state,  of  the  United  States,  of  any 
incorporated  city  of  this  state  and  of  any  other  stocks  owned  by  the 
corporation,  specifying  the  amount,  number  of  shares  and  the  par  and 
market  value  of  each  kind  of  stock  so  held. 

(7)  The  amount  of  stocks  held  thereby  as  collateral  security  for 
loans  with  the  amount  loaned  on  each  kind  of  stock,  its  par  value  and 
market  value. 

(8)  The  amount  of  the  assessments  on  stocks  or  premium  notes, 
paid  and  unpaid. 

(9)  The  amount  of  interest  actually  due  and  unpaid. 

(10)  The  amount  of  premium  notes  on  hand  on  which  policies  are 
in  fqrce. 

(11)  The  amount  and  the  manner  of  the  investment  of  its  guaranty 
surplus  fund,  if  any. 

(12)  The  amount  and  manner  of  the  investment  of  the  special 
reserve  fund,  if  any. 

Third.     The  liabilities  of  such  corporation,  specifying: 

(1)  The  amount  of  losses  due  and  unpaid. 

(2)  The  amount  of  claims  for  losses  resisted  by  the  corporation. 
.,;(3)     The  amount  of  losses  incurred  during  the  year,  including  those 
claimed  and  not  yet  due  and  those  reported  to  the  corporation  upon 
which  no  action  has  been  taken. 

(4)  The  amount  of  dividends  declared  due  and  unpaid. 

(5)  The  amount  of  dividends,  either  cash  or  scrip,  declared  not  yet 
due. 

(6)  The  amount  of  money  borrowed  and  security  given  for  the  pay- 
ment thereof. 

(7)  The  amount  required  to  reinsure  all  outstanding  risks. 

(8)  The  amount  of  all  other  existing  claims  against  the  corporation. 

Fourth.  The  income  of  the  corporation  during  the  preceding  year, 
specifying: 

(1)  The  amount  of  interest  money  received. 

(2)  The  amount  of  cash  premiums  received. 

(3)  The  amount  of  notes  received  for  premiums. 

(4)  The  amount  of  income  received  from  other  sources. 

(5)  The  amount  received  in  cash  premiums  for  insuring  property  in 
this  state. 

(6)  The  amount  received  in  premium  notes,  in  cash  notes,  and  the 
amount  received  from  other  sources  in  this  state. 


1921—1  54  Ch.  89 

Fifth.    The  expenditures  during  the  preceding  year,  specifying: 

(1)  The  amount  of  losses  paid  during  the  year,  stating  how  much 
accrued  prior  and  how  much  subsequent  to  the  date  of  the  preceding 
statement. 

(2)  The  amount  of  dividends  paid  during  the  year. 

(3)  The  amount  of  expenses  during  the  year,  stating  the  amount 
paid  officers,  salaries  and  fees;  the  amount  paid  agents,  commissions 
and  fees,  and  the  amount  paid  for  office  expenses  and  rent;  the  amount 
paid  for  taxes,  and  the  amount  of  all  other  payments  and  expenditures. 

(4)  The  amount  paid  in  this  state  for  salaries,  commissions  to 
agents  and  for  losses. 

Sixth.  Any  other  items  or  facts  which  the  commissioner  of  insurance 
may  require. 

The  statement  of  every  such  corporation  whose  capital  is  composed 
in  whole  or  in  part  of  notes  shall  show  the  amount  of  notes  originally 
forming  such  capital  and  what  portion  of  them  is  still  held  by  such  cor- 
poration and  considered  capital. 

The  statement  of  any  such  foreign  corporation  shall  set  forth  its  busi- 
ness and  affairs  in  the  United  States,  duly  verified  by  its  resident  man- 
ager in  the  United  States.  For  any  failure  to  make  and  deposit  such 
annual  statement  or  to  promptly  reply  in  writing  to  any  inquiry  ad- 
dressed by  the  commissioner  of  insurance  in  relation  to  the  business 
of  any  such  corporation  or  for  wilfully  making  any  false  statement 
therein,  every  such  corporation  or  officer  so  failing  or  making  such 
false  statement  shall  forfeit  and  pay  to  the  state  the  sum  of  five  hun- 
dred dollars,  and  for  neglecting  to  file  such  annual  statement  an  addi- 
tional five  hundred  dollars  for  every  month  that  such  corporation  shall 
continue  thereafter  to  transact  any  insurance  business  in  this  state 
until  such  statement  be  filed. 

Receivers,  statement  by. 

Section  1921.  All  receivers  and  trustees  of  any  such  insurance  cor- 
poration shall,  in  the  month  of  January  in  each  year  and  at  any  other 
time  when  requested  by  the  commissioner  of  insurance,  make  and  file 
annual  and  other  statements  of  their  assets  and  liabilities  and  of  their 
income  and  expenditures  in  the  same  manner  and  form  as  the  offic^ri; 
of  such  corporations  are  required  by  law  to  do  and  under  the  same 
penalties  for  a  failure  or  neglect  so  to  do. 


COMPENSATION   INSURANCE   BOARD 

"Company"  defined. 
SfXTioN  1921 — 1.     The  word   "company"  whenever  used   in   this  act 
means  any  insurance  carrier  authorized,  by  license  issued  by  the  de- 
partment of  insurance,  to  transact  the  business  of  workmen's  compensa- 
tion insurance  in  this  state. 


Ch.  89  55  1921—5 

Compensation  insurance  board  created. 

Section  1921 — 2.  There  is  hereby  created  a  board  to  be  known  as  the 
"Compensation  Insurance  Board."  Said  board  shall  consist  of  the  com- 
missioner of  insurance,  one  member  of  the  industrial  commission  to  be 
chosen  by  that  commission,  and  a  third  person  to  be  appointed  by  the 
governor.  The  member  of  the  industrial  commission  shall  serve  at  the 
pleasure  of  that  commission.  The  person  appointed  by  the  governor 
shall  be  versed  in  the  subject  of  workmen's  compensation  insurance 
and  in  the  making  of  rates  therefor.  His  term  shall  be  for  five  years 
and  his  salary  shall  be  fixed  by  the  governor  at  a  sum  not  exceeding 
three  thousand  five  hundred  dollars  per  year.  He  shall  take  and  file 
with  the  secretary  of  state  the  constitutional  oath  of  office  before 
entering  upon  the  discharge  of  his  duties. 

Establishment  of  board. 
Section  1921 — 3.  The  member  of  the  industrial  commission  may  ap- 
point any  other  member  of  that  commission  to  act  in  his  place  on  said 
board,  and  the  person  so  appointed  shall  have  all  the  rights,  powers,  and 
obligations  that  said  member  would  have  if  present  in  person.  The 
members  of  said  board,  except  the  person  appointed  by  the  governor, 
shall  serve  without  compensation  other  than  that  received  in  their 
regular  positions.  A  majority  of  said  board  shall  constitute  a  quorum 
for  the  transaction  of  business  and  the  performance  of  the  duties  of  the 
board.  The  said  board  shall  maintain  an  office  in  the  department  of  in- 
surance at  the  state  capitol,  but  it  may  hold  sessions  or  conduct  investi- 
gations at  any  place  in  the  state  other  than  the  capitol  when  deemed 
necessary  to  facil.tate  the  discharge  of  its  duties. 

Organization  of  board. 
Section  1921 — 4.  The  compensation  insurance  board  shall  organize 
by  electing  one  of  its  members  chairman  and  another  of  its  members 
secretary.  The  secretary  shall  keep  full  minutes  of  all  hearings, 
transactions,  and  proceedings  by  or  before  the  said  board.  The  board 
shall  have  power  to  make  all  needful  rules  for  the  orderly  perform- 
ance of  its  duties,  and  to  prescribe  the  procedure  for  the  conduct  of 
hearings  and  other  proceedings  before  it.  The  board  shall  also  have 
power  to  employ  such  persons  as  may  be  necessary  for  the  proper 
discharge  of  its  duties. 

Testimonial  powers. 

Section  1921 — 5.  In  all  hearings  before,  or  investigations  conducted 
by  said  board,  any  member  thereof  shall  have  power  to  issue  sub- 
poenas requiring  the  attendance  of  witnesses  and  the  production  of 
books,  records,  and  papers,  and  shall  have  power  to  administer  oaths. 
Any  person  who  shall  testify  falsely  in  any  material  matter  under  con- 
sideration by  said  board  shall  be  guilty  of  and  punished  for  perjury. 
Subpoenas  or  other  process  issued  by  the  said  board  shall  be  served  as 
a  summons  in  the  circuit  court.  In  case  any  witness  shall  fail  to  obey 
any  summons  to  appear  before  the  board  or  shall  refuse  to  testify  or 


1921—9  56  Ch.  89 

answer  any  material  question  or  to  produce  records,  books,  papers,  or 
documents  when  required  so  to  do,  such  failure  or  refusal  shall  be 
reported  to  the  attorney-general,  who  shall  thereupon  institute  pro- 
ceedings in  the  proper  circuit  court  to  compel  obedience  to  any  sum- 
mons or  order  of  the  board  or  to  punish  witnesses  for  any  such  neglect 
or  refusal. 

Appointment  of  person  to  hold  hearing. 
Section  1921 — 6.  Said  board  shall  have  power  to  appoint  and  author- 
ize any  person  chosen  by  it  to  hold  hearings,  make  investigations  and 
examinations  with  reference  to  any  subject  over  which  said  board  has 
or  may  have  jurisdiction.  The  person  so  appointed  shall  have  all  the 
powers  in  relation  to  said  hearing,  investigation  or  examination  that 
such  board  would  have  if  itself  acting,  but  shall  report  in. writing  the 
result  of  such  hearing,  examination  or  investigation  and  any  testimony 
taken  by  him  to  the  board.  Whether  such  powers  are  specifically 
enumerated  or  not,  the  said  board  shall  have  full  power  to  perform 
the  duties  conferred  or  imposed  upon  it  by  law. 

Merit  rating;  pure  premium;  expense  loading. 
Section  1921 — 7.  For  the  purpose  of  providing  for  the  solvency  of 
companies  writing  workmen's  compensation  insurance  in  this  state 
the  compensation  insurance  board  shall  approve  a  minimum  adequate 
pure  premium  for  each  classification  under  which  such  business  is 
written.  The  board  shall,  in  approving  such  pure  premium,  make  use 
of  the  experience  which  may  from  time  to  time  be  available,  and  of 
such  other  helpful  information  as  may  be  obtainable.  For  the  purpose 
of  uniformity  and  equality  the  board  shall,  after  consultation  with  com- 
panies, approve  a  system  of  schedule  or  merit  rating  for  use  in  writ- 
ing of  such  business  in  this  state.  No  system  of  schedule  or  merit 
rating  except  the  one  so  approved  shall  be  used  in  this  state.  The 
board  shall  also  approve  maximum  and  minimum  expense  loadings  to 
be  incorporated  in  premiums  collected  on  such  business  in  this  state. 
In  the  approval  of  rates  and  pure  premiums  the  compensation  insur- 
ance board  shall  take  into  account  the  fluctuation  resulting  from  the 
use  of  schedule  or  merit  rating. 

Survey  of  risk. 
Sectio.n  1921 — 8.  The  compensation  insurance  board  may  at  any 
time  require  a  survey  and  report  by  the  bureau  herein  provided  for 
of  any  risk  regarding  which  complaint  may  have  been  made.  Its  ap- 
proval of  any  premium  rate  or  classification  may  be  withdrawn  by 
the  board  upon  ten  days'  notice  to  the  parties  interested.  Premium 
rates  or  systems  of  schedule  or  merit  rating  shall  not  take  into  account 
the  physical  impairment  of  employes  or  experience  rating. 

Classification  of  risks. 
Section  1921 — 9.     No  classification  for  compensation   insurance  pur- 
poses shall  be  effective  until  approved  as  corroct  by  the  compensation 


Ch.  89  57  1921—12 

insui'ance  board.  No  rule  or  regulation  with  reference  to  compensation 
risks  filed  by  any  company  or  by  the  bureau  herein  provided  shall  be 
effective  until  approved  by  such  board.  If  it  shall  appear  at  any  time 
that  reasonable  doubt  on  the  part  of  the  compensation  insurance  board 
as  to  the  proper  classification  or  rate  for  any  risk  exists,  such  risk 
may  be  bound  for  insurance  subject  to  rate  and  classification  to  be 
established  therefor. 

Pay  roll  audit. 

Section  1921 — 10.  Pay  roll  audits  by  companies  shall  show  division 
by  classification,  if  any,  and  shall  be  correct  as  to  the  amount  and  as  to 
such  division  and  shall  be  reported  to  the  industrial  commission 
through  the  compensation  insurance  board.  The  board  may  verify  any 
pay  roll  audit  by  a  reaudit  of  the  books  of  the  employer  or  in  such 
other  manner  as  may  to  it  appear  most  expedient.  Upon  written  com- 
plaint stating  facts  sufficient  to  warrant  action  by  it,  said  board  shall 
verify  any  pay  roll  audit  reported  to  it. 

Investigations;  court  review. 
Section-  1921—11.  The  compensation  insurance  board  shall  have 
power,  upon  its  own  motion  or  upon  the  written  complaint  of  any  per- 
son having  a  direct  interest,  to  review  the  acts  of  any  company,  bureau, 
or  agent  subject  to  the  provisions  of  this  section,  and  to  make  findings 
and  orders  requiring  compliance  with  the  provisions  hereof.  Such 
review  before  the  board  shall  be  upon  due  notice  to  the  parties  inter- 
ested, and  its  findings  or  orders  sliall  be  made  after  a  hearing  before 
it,  and  in  all  cases  shall  be  subject  to  summary  review  by  the  circuit 
court  of  Dane  county.  During  such  court  review  the  operation  of  the 
board's  order  shall  be  suspended,  but  in  the  event  of  final  determina- 
tion against  an  insurer,  any  overcharge  made  during  the  pendency  of 
such  proceedings  shall  be  refunded  to  the  person  entitled  thereto.  All 
written  complaints  under  this  section  shall  be  verified,  and  may  be 
upon  information  and  belief  of  the  person  complaining.  A  copy  of 
such  complaint  shall  be  served  upon  the  company,  bureau,  or  person 
against  whom  the  complaint  is  directed,  and  each  of  such  parties  in 
interest  shall  be  entitled  to  at  least  ten  days'  notice  of  any  hearing 
thereon.  When  the  action  is  upon  the  board's  own  motion  any  com- 
pany or  person  affected  shall  be  entitled  to  at  least  ten  days'  notice 
of  a  hearing  upon  the  matter  to  be  inquired  into.  Any  finding  or 
order  made  by  the  board  as  a  result  of  an  investigation  upon  its  own 
motion  shall  be  subject  to  court  review  as  herein  provided. 

Rating  bureau. 

Section  1921 — 12.  Every  company  transacting  the  business  of  work- 
men's compensation  insurance  in  this  state  shall  be  a  member  of  a 
bureau  to  be  maintained  in  this  state  for  the  following  purposes: 

1.  To  separate  the  industries  of  this  state  that  are  subjects  of  work- 
men's compensation  insurance  into  proper  classes  for  compensation 
insurance  purposes;  to  make  inspections  of  compensation  risks  and  to 


1921—15  58  Ch.  89 

apply  thereto  the  schedule  or  merit  rating  system  approved  for  use  in 
this  state;  to  establish  charges  and  credits  under  such  system  and  to 
make  reports  showing  all  facts  affecting  such  risks  as  the  subject 
of  compensation  insurance. 

2.  To  assist  the  compensation  insurance  board  and  companies  In 
approving  rates,  delerminrng  hazards,  and  other  material  facts  in  con- 
nection with  compensation  risks  and  to  assist  in  promoting  safety  In 
the  industries. 

Organization  and  government  of  rating  bureau. 

Sectio.n  1921 — 13.  The  bureau  shall  be  organized  by  the  companies 
writing  workmen's  compensation  insurance  in  this  state  within  thirty 
days  after  the  passage  and  publication  of  this  act.  The  commissioner 
of  insurance  shall  fix  a  time  and  place  for  the  first  meeting  of  repre- 
sentatives of  such  companies  to  organize  the  bureau.  Notice  of  such 
meeting  shall  be  given  to  each  company  authorized  to  write  workmen's 
compensation  insurance  in  this  state  at  least  ten  days  before  such 
meeting.  The  bureau  shall  make  by-laws  for  its  government  and  for 
the  government  of  its  members.  Such  articles  and  by-laws  and  all 
amendments  thereto  shall  be  filed  with  and  approved  by  the  compen- 
sation insurance  board  and  shall  not  be  effective  until  so  filed  and 
approved.  Such  bureau  shall  admit  to  membership  any  company  au- 
thorized to  transact  workmen's  compensation  insurance  in  this  state. 
The  charges  and  service  of  such  bureau  shall  be  equitable  and  non- 
discriminatory as  between  member  companies. 

Assessment  for  operation  expense  of  bureau. 
Section  1921 — 14.  Each  company  which  is  a  member  of  such  bureau 
shall  pay  an  equitable  and  nondiscriminatory  share  of  the  cost  of 
operating  the  bureau.  If  the  members  of  the  bureau  cannot  agree  upon 
an  apportionment  of  cost,  any  member  may,  in  writing,  petition  the 
compensation  insurance  board  to  establish  a  basis  for  apportioning 
such  cost.  If  any  member  is  aggrieved  by  an  apportionment  made  by 
the  bureau  it  may,  in  writing,  petition  the  board  for  a  review  of  such 
apportionment.  The  board  shall,  upon  not  less  than  five  days'  notice 
to  each  member  of  the  bureau,  ho'.d  a  hearing  upon  any  such  petition, 
at  which  all  members  shall  be  entitled  to  be  present  and  be  heard. 
The  board  shall  determine  the  matter  and  mail  a  copy  of  its  decision 
to  each  member  of  the  bureau.  The  decision  of  the  board  shall  be 
final  and  binding  upon  all  members  of  the  bureau. 

Representation  in  the  bureau. 
Section  1921 — 15.  Each  class  of  insurers,  to- wit,  stock  companies, 
mutual  companies,  and  interinsurers  which  are  members  of  such  bu- 
reau shall  be  represented  in  the  bureau  management  and  on  commit- 
tees as  provided  in  the  by-laws,  but  the  participating  and  nonpartici- 
pating  companies  shall  have  equal  representation  on  the  governing  or 
managing  committee  and  also  on  the  rating  committee  of  the  bureau. 
One-half  the  members  of  each  committee  shall  be  chosen  by  the  par- 


Ch.  89  59  1921-18 

ticipating  companies  and  one-half  by  the  nonparticipating  companies. 
Each  member  company  shall  be  entitled  to  one  vote.  In  case  of  a  tie 
vote  upon  any  committee  the  compensation  insurance  board  shall  cast 
the  deciding  vote. 

License  of  bureau. 

Section  1921—16.  The  bureau  shall  procure  annually  from  the  com- 
missioner of  insurance  a  license  to  carry  on  its  business.  The  license 
year  for  such  bureau  shall  be  from  March  first  to  the  last  day  of 
February  succeeding.  The  bureau  shall  pay  to  the  state,  through  the 
commissioner  of  insurance,  an  annual  license  fee  of  one  hundred  dol- 
lars, such  fee  to  be  paid  at  the  time  of  filing  application  for  license. 
The  commissioner  of  insurance  shall  prescribe  blanks  and  make  needed 
regulations  governing  the  licensing  of  the  bureau.. 

Annual  report  of  bureau;  supervision. 
Section  1921 — 17.  The  bureau  shall  annually  on  or  before  March 
first,  file  with  the  compensation  insurance  board  a  statement  covering 
its  activities  for  the  year  ending  on  the  preceding  thirty-first  day  of 
December.  Such  report  shall  cover  its  financial  transactions  and  also 
other  matters  connected  with  its  operation  as  required  by  the  board. 
The  board  shall  prescribe  the  form  of  such  report.  The  bureau  shall 
be  subject  to  supervision  and  examination  by  the  compensation  in- 
surance board  or  any  examiner  authorized  by  it.  Examinations  may 
be  made  as  often  as  deemed  expedient.  The  expense  of  such  examina- 
tion shall  be  paid  by  the  bureau. 

Bureau  classification  and  survey  of  risks. 

Section  1921—18.  The  bureau  shall  on  behalf  of  all  its  members 
assign  each  compensation  risk  and  subdivision  thereof  in  this  state 
to  its  proper  classification.  Such  determination  as  to  the  proper  classi- 
fication by  the  bureau  shall  be  subject,  however,  to  the  approval  of 
the  compensation  insurance  board  as  herein  provided.  The  bureau 
shall  also  on  behalf  of  all  members  thereof  inspect  and  make  a  writ- 
ten survey  of  each  risk  to  which  the  system  of  schedule  or  merit 
rating  approved  for  use  in  this  state  is  applicable.  It  shall,  on  be- 
half of  all  the  members  thereof,  file  with  the  compensation  insurance 
board  its  classification  of  risks  and  also  the  written  surveys  of  all 
risks  inspected  by  it,  showing  charges  and  credits  if  any,  and  such 
other  facts  as  are  material  in  the  writing  of  insurance  thereon.  It 
shall  also  file  any  subsequent  proposed  classification  or  later  survey 
and  all  rules  and  regulations  which  do  or  or  may  affect  the  writing  of 
such  risks.  Any  company  may  file  with  the  bureau  and  the  board, 
rules  and  regulations  governing  such  company  in  its  writings.  The 
bureau  classification  shall  be  binding  upon  all  companies.  The  com- 
pensation insurance  board  and  also  the  bureau  and  its  representatives 
shall  give  all  information  as  to  classifications,  rates,  surveys  and  other 
facts  collected  and  intended  for  the  common  use  of  companies  subject 
to  this  act  to  all  such  companies  at  the  same  time. 


1921—22  60  Ch.  89 

Bureau  records;  hearings;  appeal  to  board. 
Section  1921 — 19.  The  bureau  shall  keep  a  careful  record  of  its  pro- 
ceedings. It  shall  furnish,  upon  his  demand,  to  any  employer  upon 
whose  workmen's  compensation  risk  a  survey  has  been  made,  full  in- 
formation as  to  such  survey  including  the  charges  and  credits  fixed 
thereby.  The  bureau  shall  also  provide  such  means  as  may  be  ap- 
proved by  the  compensation  insurance  board  whereby  any  member 
company  or  any  employer  whose  risk  has  been  inspected  by  it  may  be 
heard,  either  in  person  or  by  a  representative,  before  its  governing 
or  rating  committee  or  other  proper  representative  with  reference  to 
any  matter  affecting  such  risk.  Any  company  or  employer  may  ap- 
peal from  a  decision  of  the  bureau  to  the  compensation  insurance 
board.  The  bureau  shall  also  make  rules  governing  appeals,  which 
rules  shall  be  filed  with  and  approved  by  the  compensation  insurance 
board.  The  bureau  shall  file  with  the  compensation  insurance  board, 
whenever  it  may  call  therefor,  such  information  as  it  may  have  con- 
cerning any  matter  connected  with  its  activities. 

Unfair  discrimination. 
SECTION  1921—20.  No  company  shall  make  or  charge  any  rate  for 
workmen's  compensation  insurance  in  this  state  which  discriminates 
unfairly  between  risks  or  classes,  or  which  discriminates  unfairly  be- 
tween risks  in  the  application  of  like  charges  and  credits  in  the  plan 
of  schedule  or  merit  rating  in  use;  and  no  company  shall  discriminate 
by  granting  to  any  employer  insurance  against  other  hazards  at  less 
than  its  regu'.ar  rates  for  such  insurance,  or  otherwise. 

Filing  of  rates. 
Section  1921 — 21.  Every  company  writing  workmen's  compensation 
insurance  in  this  state  shall  file  with  the  compensation  insurance  board 
its  rates  for  such  insurance  and  all  additions  thereto  or  changes  there- 
in. All  rates  so  filed  shall  comply  with  the  requirements  of  law  and 
shall  not  be  effective  or  used  until  approved  as  to  such  compliance 
by  the  compensation  insurance  board.  A  rate  which  is  filed  and  ap- 
proved shall  not  be  changed  until  the  substituted  rate  has  been  filed 
for  at  least  fifteen  days  and  has  been  approved  by  the  board. 

Filing  schedufe  of  expense  loading. 
Skction  1921 — 22.  Every  company  writing  workmen's  compensation 
insurance  in  this  state  shall  file  with  the  compensation  insurance  board 
a  schedule  of  the  expense  loading  to  be  collected  by  it  on  workmen's 
compensation  business  written  in  this  state.  Such  loading  shall  be 
approved  by  the  board  as  to  adequacy  and  as  to  compliance  with  the 
orders  of  the  board,  and  it  shall  not  be  effective  until  so  approved. 
All  modifications  or  changes  in  such  loading  shall  also  be  filed  with 
and  approved  by  thr  hoard  before  becoming  effective. 


Ch.  89  61  1921—28 

Minimum  pure  premium. 
Section  1921 — 23.  In  fixing  its  rates  no  company  shall  use  a  pure 
premium  less  than  that  approved  as  adequate  by  the  compensation  in- 
surance board.  Any  company  in  fixing  its  rates  may  use  a  pure  pre- 
mium higher  than  that  established  by  the  compensation  insurance 
board. 

Minimum  rate. 
Section  1921 — 24.  No  company  shall  write  insurance  at  a  rate  other 
than  that  approved  for  it  as  adequate  by  the  compensation  insurance 
board;  provided,  however,  that  a  rate  may  be  reduced  or  increased  by 
the  application  to  individual  risks  of  the  system  of  schedule  or  merit 
rating  which  has  been  approved  by  the  board.  Such  reduction  or  in- 
crease shall  be  set  forth  in  the  policy  or  by  an  endorsement  thereon. 

Report  of  writings. 

Section  1921 — 25.  Every  company  writing  workmen's  compensation 
insurance  in  this  state  shall  report  its  writings  to  the  compensation 
insurance  board.  The  board  shall  prescribe  forms  for  and  make  rules 
governing  agents  and  companies  in  making  such  reports.  Such  re- 
ports shall  be  checked  by  the  board,  and  upon  being  approved  as  com- 
plying with  law,  shall  be  filed  with  the  industrial  commission.  No 
information  regarding  the  writings  of  any  company  shall  be  made  pub- 
lic by  said  board  or  any  of  its  employes  except  as  required  by  law. 

Filing  information  concerning  writings. 
Section  1921 — 26.     Every  company  insuring  the  liability  of  employers 
for   compensation   shall   file   with   the   compensation   insurance   board 
such  information  regarding  insurance  written  by  it  on  risks  located  in 
this  state  as  such  board  may  from  time  to  time  require. 

Ad  interim  filings. 
Section  1921 — 27.  The  rates  for  workmen's  compensation  Insurance 
filed  with  the  industrial  commission  when  this  act  goes  Into  effect 
shall  be  binding  upon  the  company  filing  them  until  revised  or  changed 
under  sections  1921 — 1  to  1921 — 29  inclusive,  or  by  an  order  of  the 
compensation  insurance  board. 

Penalty. 

Section  1921 — 28.  Any  company,  rating  bureau  agent,  or  other  rep- 
resentative or  employe  of  any  company  or  rating  bureau  failing  to 
comply  with  or  which  is  guilty  of  a  violation  of  any  of  the  provisions 
of  sections  1921 — 1  to  1921 — 29,  inclusive,  or  of  any  order  or  ruling 
of  the  commissioner  of  insurance  or  of  the  compensation  Insurance 
board  made  hereunder,  shall  be  punished  by  a  fine  of  not  less  than 
fifty  nor  more  than  five  hundred  dollars.  In  addition  thereto,  the 
license  of  any  company,  agent,  or  broker  guilty  of  such  violation  may 
be  revoked  or  suspended  by  the  commissioner  of  insurance. 


1921—34  62  Ch.  89 

Scope  of  statute. 

Sectiox  1921 — 29.  This  act  shall  not  apply  to  contractors'  class  mu- 
tual companies  where  the  premiums  are  fixed,  assessed  and  collected 
on  the  basis  of  the  contract  price  of  construction,  building  or  repairing. 

Unfair  discrimination  prohibited. 

Section  1921 — 30.  No  company  or  other  insurer  licensed  in  this  state 
to  write  liability  insurance  shall  unfairly  discriminate  in  its  writings 
between  risks  or  classes  of  risks,  nor  shall  it  use  any  schedule  or 
other  system  of  rating  or  classifying  the  application  of  which  results 
in  discrimination.  No  such  company  or  other  insurer  shall  grant  in- 
surance against  hazards  other  than  those  covered  by  this  act  at  rates 
lower  than  its  regular  rates  for  such  coverage  for  the  purpose  of  evad- 
ing the  anti-discrimination  provision  of  this  section.  No  such  company 
or  other  insurer  shall  charge  or  collect  unjust  or  unreasonable  rates  for 
the  kinds  of  insurance  covered  by  this  act. 

Rates  and  classification  to  be  filed. 
Section  1921 — 31.  Every  company  writing  any  kind  of  liability  in- 
surance in  this  state  shall,  before  they  are  effective  in  this  state,  file 
with  the  commissioner  of  insurance  its  rates  and  manual  of  classifica- 
tion of  risks  for  each  kind  of  liability  insurance  written  by  it.  All 
subsequent  changes  or  additions  to  such  rates  and  manual  of  classi- 
fication shall,  before  they  are  effective  in  this  state,  be  filed  with  the 
commissioner  of  insurance. 

Same;    investigation. 

Section  1921 — 32.  Any  schedule  or  other  system  of  rating  and  classi- 
fying risks  used  in  this  state  shall  be  filed  with  the  commissioner  of 
insurance  and  no  such  schedule  or  plan  shall  be  used  until  it  is  so 
filed.  The  commissioner  of  insurance  may  upon  his  own  motion  or 
upon  the  complaint  of  any  interested  person  investigate  the  results 
produced  by  the  application  of  such  schedule  or  plan  and,  if  upon  such 
investigation  he  shall  find  that  it  produces  unfair  or  discriminatory 
results,  he  shall  by  order  require  the  company  filing  it  to  modify  the 
schedule  or  plan  as  directed  in  such  order. 

Same. 
Si'XTioN  1921 — 33.     No  such  company  shall  in  the  writing  of  any  risk 
in  this  state  use  a  rate  or  classification  other  than  that  filed  with  the 
commissioner  of  insurance  and  properly  applicable  to  the  risk. 

Remedy  for  unfair  discrimination. 
Section  1921 — 34.  The  commissioner  of  insurance  shall  have  power 
upon  the  written  complaint  of  any  person  having  a  direct  financial 
Interest  or  upon  his  own  motion  to  review  any  rate  filed  by  any  such 
company  for  the  purpose  of  determining  whether  the  same  is  unrea- 
sonable or  discriminatory.  If  he  shall  find  that  the  rate  Is  discrimina- 
tory, he  shall  order  the  discrimination  removed  and  a  nondiscrhmina- 


Ch.  89  63  1922 

tory  rate  substituted.  If  he  shall  find  that  the  rate  is  unreasonable, 
he  shall  establish  a  reasonable  rate  and  by  order  require  the  com- 
pany to  make  a  rate  for  siich  risk  or  class  which  shall  not  be  higher 
than  the  rate  so  established  by  him.  Any  review  of  rates  before  the 
commissioner  of  insurance  shall  be  upon  notice  to  the  parties  interested 
and  his  findings  or  orders  shall  be  made  after  a  hearing  before  him 
and  shall  in  all  cases  be  subject  to  review  by  the  circuit  court  of  Dane 
county.  If  the  investigation  is  upon  the  commissioner's  own  motion 
and  results  in  a  find  which  materially  affects  the  interests  of  a  com- 
pany, a  copy  of  such  finding  shall  be  served  upon  the  company  or 
companies  affected  and  they  shall  be  entitled  to  a  hearing  before  the 
commissioner  upon  a  request  therefor  made  within  ten  days  from 
the  service  of  such  findings  upon  such  company.  No  order  or  finding 
of  the  commissioner  made  as  a  result  of  an  investigation  on  his  own 
motion  shall  be  effective  until  the  expiration  of  the  time  within  which 
a  request  for  a  hearing  may  be  made. 

Company  to  report  all  information  called  for. 
Sectton  1921 — 35.  Every  company  subject  to  the  provisions  of  this 
act  shall  file  with  the  commissioner  of  insurance  such  information 
regarding  its  writings,  practices  and  experience  as  he  may  from  time 
to  time  require.  Every  company  subject  to  this  act  shall,  on  or  before 
the  first  day  of  May,  1920,  and  annually  thereafter,  report  to  the  com- 
missioner of  insurance  of  this  state,  the  amount  of  insurance  written, 
the  amount  of  premiums  received  and  the  amount  of  losses  paid  during 
the  year  ending  on  the  preceding  thirty-first  of  December  and  cover- 
ing liability  risks  in  the  state  of  Wisconsin.  Such  report  shall  show 
such  experience  by  classes  as  may  be  required  by  the  commissioner 
of  insurance.  The  commissioner  shall  prepare  and  supply  each  com- 
pany subject  to  the  provisions  of  this  act  with  blanks  upon  which  to 
make  such  report.  The  experience  of  individual  companies  shall  not 
be  made  public. 

Workmen's  compensation  not  affected. 

Sectiox  1921—36.  Sections  1921—30  to  1921—35,  both  inclusive, 
shall  not  apply  to  risks  covered  under  the  workmen's  compensation 
act  nor  to  the  rates,  rating  system  or  classification  of  such  risks. 


BOARDS  OF  FIRE   UNDERWRITERS  AND   FIRE  PATROL 

May  incorporate. 

Section  1922.  Any  three  or  more  agents  or  underwriters,  lawfully 
doing  the  business  of  fire  insurance  in  any  city  of  this  state,  may  be 
incorporated  as  a  board  of  underwriters  in  such  city  under  the  provi- 
sions of  chapter  86  for  the  usual  purposes  for  which  such  boards  are 
established. 


1925  64  Ch.  39 

Fire  patrol ;  duties. 
Section  1923.  Any  incorporated  board  of  fire  underwriters  may 
establish  a  fire  patrol  in  any  city  wherein  it  is  located,  and  for  that 
purpose  may  appoint  and  remove  at  pleasure  a  superintendent  and 
such  number  of  patrols  as  they  shall  deem  proper  and  provide  suit- 
able accommodations  and  apparatus  for  such  patrol,  and  from  time 
to  time  make  all  needful  rules  and  regulations  for  the  government 
and  direction  thereof;  the  duty  of  such  patrol  shall  be  to  discover 
and  prevent  fires  and  to  save  and  preserve  life  and  property  at  and 
after  fires,  and  for  that  purpose  full  power  is  given  to  such  super- 
intendent and  patrol  to  enter  any  building  on  fire  or  which  may  be 
exposed  to  or  be  in  danger  of  taking  fire  from  other  burning  buildings, 
subject  to  the  control  of  the  chief  of  the  fire  department  of  the  city, 
and  to  remove  such  property  or  any  part  thereof  at  or  immediately 
after  a  fire  and  to  guard  and  protect  the  same. 

Annual  meeting,  when  held. 
Section  1924.  For  the  purpose  of  establishing  and  defraying  the 
necessary  expenses  of  such  fire  patrol  there  shall  be  a  meeting  of 
the  said  board  of  fire  underwriters  in  the  month  of  January  in  each 
year;  prior  notice  of  such  meeting,  specifying  the  time  and  place  at 
which  it  will  be  held,  shall  be  inserted  for  at  least  ten  days  in  one 
dally  newspaper  published  in  the  city  where  such  board  is  located; 
at  such  meeting  each  insurance  corporation,  agent  or  person  doing  a 
fire  insurance  business  in  such  city  shall  have  the  right  to  be  present 
and  each  corporation  represented  shall  be  entitled  to  one  vote.  Such 
meeting  may  determine  whether  such  fire  patrol  shall  be  established, 
or  continued  if  established,  and  fix  the  maximum  amount  of  expenses 
which  shall  be  incurred  therefor  during  the  ensuing  year;  but  such 
maximum  amount  shall  not  in  any  one  year  exceed  two  per  cent  of 
the  aggregate  amount  of  premiums  for  fire  insurance  received  in  such 
city  during  such  year. 

Expenses  of  patrol. 
Section  1925.  On  the  first  day  of  February  in  each  year  each  insur- 
ance corporation,  underwriter  or  agent  doing  any  fire  insurance  busi- 
ness in  such  city  shall  furnish  to  said  board  a  statement,  verified  by 
affidavit,  of  the  aggregate  amount  of  premiums  received  for  insuring 
property  in  such  city  during  the  year  ending  on  the  next  preceding  first 
day  of  January.  Upon  the  statement  so  furnished  said  board  shall 
assess  the  amount  fixed  as  aforesaid  for  the  expenses  of  said  fire 
patrol  for  the  current  year  upon  the  several  corporations,  underwriters 
or  agents,  in  proportion  to  the  amount  of  the  premiums  returned  as  re- 
ceived by  each,  and  such  assessments  may  be  recovered  by  action  in 
the  name  of  such  board.  If  any  such  statements  shall  not  be  made  as 
above  required,  said  board  shall  cause  a  demand  in  writing  to  be 
served  on  the  corporation,  underwriter  or  agent  so  failing  to  make 
such  sworn  statement.  Such  demand  shall  be  served  by  leaving  the 
same   during  l)usiness   hours   at   its   or  his   oflice   with   the   person   in 


Ch.  ^9  65  1926—4 

charge  thereof,  and  every  such  corporation,  underwriter  or  agent 
who  shall  wilfully  make  fa'.se  statement  or  who  shall,  for  fifteen  days 
after  such  demand,  neglect  to  render  such  statement  shall  forfeit 
fifty  dollars  and  an  additional  fifty  dollars  for  each  day's  neglect  after 
the  expiration  of  said  fifteen  days,  one-half  to  the  use  of  said  board, 
when  it  shall  prosecute  therefor. 

Dues  to  fire  departments;  liability  of  insured. 
Section-  1926.  1.  Every  city  or  village  or  town  containing  an  unin- 
corporated village,  having  or  maintaining  a  regularly  organized  fire 
department,  as  hereinafter  provided,  shall  be  entitled,  for  the  support 
and  maintenance  of  such  fire  department,  to  two  per  centum  upon 
the  amount  of  all  premiums  which,  during  the  year  or  part  of  a  year 
ending  on  the  next  preceding  first  day  of  January,  shall  have  been 
received  by,  or  shall  have  been  agreed  to  be  paid  to  any  company  or 
insurer,  or  agent  thereof,  for  any  insurance  effected,  or  agreed  to 
be  effected,  or  promised  by  such  company,  insurer  or  agent  thereof 
against  loss  or  injury  by  fire  in  any  such  city  or  village,  or  within  a 
radius  of  one  mile  from  the  location  of  any  fire  department  in  any 
town  containing  an  unincorporated  village;  such  dues  to  be  payable 
as  provided  in  section  1926m. 

2.  No  city,  village  or  town  shall  be  entitled  to  such  dues  unless  it 
shall  have,  support  or  maintain  a  fire  department  consisting,  in  case 
of  a  voluntary  department,  of  at  least  one  fire  engine  or  chemical  fire 
engine  company  with  not  less  than  ten  active  members,  having  at 
least  one  good  fire  engine  or  one  chemical  fire  engine  with  a  capacity 
of  fifty  gallons  and  not  less  than  five  hundred  feet  of  sound  rubber, 
leather  or  other  hose  for  a  fire  engine  or  not  less  than  one  hundred  fifty 
feet  of  such  hose  for  a  chemical  fire  engine,  kept  in  an  engine  house  fit 
and  ready  at  all  times  for  actual  service,  and  at  least  one  hook  and 
ladder  company,  with  not  less  than  twelve  active  members,  having  a 
good  hook  and  ladder  truck,  and  each  such  company  shall  hold  a  meet- 
ing at  least  once  a  month,  and  in  case  of  paid  or  partly  paid  fire  de- 
partment, the  buildings,  machinery  and  materials  hereinbefore  enumer- 
ated and  the  necessary  men,  teams  and  equipments  to  constitute  an 
active  and  properly  equipped  department,  ready  for  service  at  all  times. 

3.  In  case  any  city,  village  or  town  shall  have  and  maintain  a  system 
of  waterworks  with  sufficient  pressure  for  fire  purposes,  with  one  or 
more  hose  companies  of  not  less  than  ten  active  members,  each  having 
not  less  than  five  hundred  feet  of  sound  rubber,  leather  or  other  hose, 
with  one  or  more  hose  carts  kept  fit  and  ready  at  all  times  for  actual 
service,  such  city,  village  or  town  shall  not  be  required  to  maintain  a 
fire  engine. 

4.  No  city,  village  or  town  shall  be  paid  any  fire  department  dues 
for  any  year  unless  the  industrial  commission  shall  have  certified  to 
the  commissioner  of  insurance  that  the  requirements  of  section  19461 
have  been  complied  with  as  to  such  city,  village  or  town,  and  any  fire 
department  dues  paid  into  the  state  treasury  for  any  city,  village  or 


1926m  t)G  Ch.  89 

town  not  entitled  to  receive  the  same  may  be  expended  by  the  in- 
dustrial commission  for  making  the  necessary  inspections  within  any 
such  city,  village  or  town.  In  any  case  where  such  fire  department 
dues  shall  be  withheld  from  any  city,  village  or  town  Avhere,  under 
the  statutes,  the  same  shall  be  payable  into  any  firemen's  pension  fund 
or  other  special  funds  for  the  benefit  of  disabled  or  superannuated 
firemen,  an  amount  equal  to  the  fire  department  dues  so  withheld  shall 
be  paid  into  such  pension  fund  from  any  fund  of  such  city,  village 
or  town  available  therefor,  and  if  no  such  fund  be  so  available,  the 
same  shall  be  included  in  and  paid  out  of  the  next  taxes  levied  and 
collected  for  any  such  city,  village  or  town. 

5.  The  owner  of  any  property  situated  in  any  city,  village  or  town ' 
within  this  section  who  shall  insure  the  same  in  any  company  not 
authorized  to  do  business  in  this  state,  or  in  any  company  authorized 
to  do  business  in  this  state  which  has  not  complied  with  the  provisions 
of  this  section  in  regard  to  the  payment  of  fire  department  dues  shall 
be  liable  to  the  state  for  the  percentage  of  premiums  on  the  insurance 
on  such  property,  and  such  percentage  may  be  recovered  in  a  civil 
action  brought  in  the  name  of  the  state,  and  when  recovered  it  shall 
be  payable  to  such  city,  village  or  town. 
Section   1926  is  referred   to   in  1211 — 37, 1915m  (11),  1926m. 

Fire   department  dues,   lists   of  towns   entitled;     payment  through 
commissioner  and  state  treasurer. 

Section  1926m.  1.  The  state  fire  marshal  shall  annually  or  before 
the  first  day  of  October,  file  with  the  commissioner  of  insurance  a  state- 
ment containing  the  name  of  every  city,  village  or  town  entitled  to  fire 
department  dues  under  section  1926. 

2.  The  commissioner  of  insurance  shall  annually,  on  or  before  the 
fifteenth  day  of  December  in  each  year,  forward  to  every  company  or 
insurer  transacting  the  business  of  fire  insurance  within  this  state,  a 
list  of  all  cities,  villages  and  towns  entitled  to  fire  department  dues 
under  section  1926. 

3.  Every  company  or  insurer  effecting  any  insurance  against  loss 
or  injury  by  fire  in  any  city,  village  or  town  in  this  state,  entitled  to 
any  fire  department  dues  under  section  1926,  shall,  on  or  before  the  first 
day  of  February  in  each  year,  file  with  the  commissioner  of  insurance 
a  statement,  showing  the  amount  of  premiums  upon  which  any  such 
fire  department  dues  shall  be  payable  to  any  such  city,  village  or 
town,  and  pay  to  the  state,  through  the  commissioner,  the  total  amount 
of  such  fire  department  dues  payable  to  all  the  cities,  villages  or  towns 
in  the  state  entitled  to  the  same.  Return  premiums,  as  defined  in  sec- 
tion 1211 — 31,  may  be  deducted  in  determining  the  premium  on  which 
the  dues  are  payable  under  section  1926. 

4.  The  commissioner  of  insurance  shall,  on  or  before,  the  first  day  of 
May  in  each  year,  compile  the  total  amount  of  fire  department  dues 
paid  by  all  companies  and  insurers  as  herein  required,  and  certify  the 
total  amount  for  each  city,  village  or  town  to  the  secretary  of  state; 


Ch.  89  ()7  ]927 

and  such  amount  shall,  upon  being  audited  by  the  secretary  of  state, 
be  paid  by  the  state  treasurer  to  the  respective  treasurers  of  the  cities, 
villages  and  towns  entitled  to  the  same. 

5.  The  commissioner  shall  also  transmit  to  the  ti'easurer  of  each  city, 
village  and  town  entitled  to  any  such  fire  department  dues,  a  state- 
ment of  the  total  amount  of  such  dues  payable  to  such  city,  village  or 
town,  and  he  shall  also  furnish  to  the  treasurer  of  any  such  city,  village 
or  town,  upon  request,  a  list  of  the  companies  or  other  insurers  paying 
such  dues  and  the  amount  paid  by  each. 

6.  [Repealed  by  ch.  66,  1917]. 


TOWN   INSURANCE   COMPANIES 

Organization. 

Section  1927.  1.  Any  number  of  persons,  not  less  than  twenty-five, 
residing  in  the  same  town  or  in  adjoining  towns,  not  exceeding  thirty 
in  number,  except  in  cases  where  any  county  contains  a  larger  num- 
ber, when  all  the  towns  therein  may  be  included,  who  collectively  own 
insurable  property  of  not  less  than  twenty-five  thousand  dollars  in 
value  which  they  desire  to  have  insured,  may  form  themselves  into  a 
corporation  for  mutual  insurance  against  loss  or  damage  by  fire  or 
lightning  by  complying  with  the  following  conditions,  namely:  They 
shall  sign  articles  of  organization  which  shall  be  substantially  in  the 
following  form: 

Articles;    form. 

2.  The  undersigned,  residents  of  the  town  below  named  and  owners 
of  more  than  twenty-five  thousand  dollars'  worth  of  property  therein 
which  we  desire  to  insure,  do  hereby  associate  for  the  purpose  of  form- 
ing a  mutual  fire  insurance  corporation  to  do  such  insurance  in  the 
towns  of  (here  insert  the  name  of  each  town  in  which  such  corpora- 
tion purposes  to  do  business  and  the  names  of  the  counties  in  which 
they  are  situated),  under  the  provisions  of  sections  1927  to  1941,  in- 
elusive,  of  the  Wisconsin  statutes.     The  name  of  such  corporation  shall 

be  the (Give  name  at  length).     The  officers 

shall  be  a  board  of  directors (insert  number,  not  less 

than  five  nor  more  than  eleven),  a  president,  secretary  and  treasurer 
and  such  others  as  may  be  provided  for  in  the  by-laws  of  such  corpora- 
tion, and  the  office  of  such  corporation  shall  be  in  the  town  from  which 

said  directors  shall  elect  their  secretary,  in  the  county  of 

The  following  named  persons  shall  constitute  the  first  board  of  direc- 
tors and  shall  hold  their  respective  offices  for  one  year  and  until  their 
successors  are  elected   (here  insert  the  names).     In  witness  whereof 

we  have  hereunto  subscribed  our  names,  this day  of 

,  A.  D.  19 


1927—4  68  til.  ^.'J 

Filing  articles;    amendment;    recording. 

3.  Such  articles  of  organization  shall  be  subscribed  by  at  least 
twenty-five  persons,  residents  of  the  towns  therein  named,  who  are 
owners  of  at  least  twenty-five  thousand  dollars'  worth  of  property 
which  shall  be  insured  by  such  corporation. 

(a)  Two  copies  of  the  original  articles,  each  accompanied  by  the 
affidavit  of  two  of  the  signers  thereof  stating  that  they  are  personally 
acquainted  with  the  signers  and  know  them  to  be  the  owners  of  prop- 
erty to  the  amount  stated  in  said  articles,  which  may  be  insured  for 
said  sum,  and  that  such  copy  is  a  true  and  complete  copy  of  the  orig- 
inal articles  of  organization,  shall  be  forwarded  to  the  commissioner 
of  insurance,  and  if  approved  by  him  and  the  attorney-general,  the 
former  shall  file  one  copy  in  his  office  and  attach  to  the  other  copy  , 
his  certificate  of  such  filing.  Such  certified  copy  shall  within  thirty 
days  be  recorded  in  the  office  of  the  register  of  deeds  of  the  county 
in  which  the  greater  number  of  the  directors  named  in  said  articles 
reside.  The  register  of  deeds  shall  forthwith  transmit  to  the  commis- 
sioner  of  insurance  his  certificate  stating  the  time  and  place  when 
such  copy  was  recorded,  and  shall  be  entitled  to  i.  fee  of  twenty-five 
cents  therefor  to  be  paid  by  the  person  presenting  the  same  for  record. 
Upon  the  receipt  of  such  certificate  the  commissioner  of  insurance  shall 
Issue  a  certificate  of  incorporation. 

(b)  Thereupon  the  persons  subscribing  said  articles,  and  such  as 
shall  afterwards  become  insured  thereby,  shall  be  a  corporation  by  the 
name  mentioned  in  said  articles  with  the  usual  powers  and  subject  to 
the  usual  duties  and  liabilities  of  a  corporation  for  the  purpose  here- 
inafter mentioned. 

(c)  The  articles  of  organization  may  be  amended  without  notice  by 
a  resolution  adopted  by  two-thirds  of  the  votes  cast  on  the  question 
at  any  annual  meeting.  Such  articles  may  also  be  amended  by  a  reso- 
lution adopted  by  two-thirds  of  the  votes  cast  on  the  question  at  a 
special  meeting;  provided,  at  least  thirty  days'  notice  thereof,  reciting 
the  proposed  amendment  shall  be  given  by  mail  to  the  members.  The 
secretary  shall  give  such  notice  upon  written  request  therefor  by  ten 
or  more  members.  Within  ten  days  after  the  adoption  of  such  amend- 
ment two  copies  thereof  with  the  affidavit  of  the  president  and  secre- 
tary showing  compliance  with  the  law,  shall  be  forwarded  to  the  com- 
missioner of  insurance,  and  if  approved  by  him  and  by  the  attorney- 
general,  the  former  shall  file  one  copy  in  his  office  and  attach  to  the 
other  copy  his  certificate  of  such  filing.  Such  certified  copy  shall  be 
recorded  as  provided  for  the  articles  of  organization  and  a  like  cer- 
tificate made  by  the  register  of  deeds.  Dissolution  of  a  company  may 
be  effected  by  an  amendment  of  the  articles  in  like  manner. 

Name. 

4.  The  words  "Town  Insurance  Company"  shall  form  part  of  the 
name  of  every  such  corporation  hereafter  organized,  and  no  corpora- 
tion not  organized  under  this  section  shall  be  entitled  to  use  a  name 


Ch.  89  •  69  1928 

embodying  said  words,  except  that  corporations  now  existing  may  con- 
tinue their  present  names. 

Change  of  name. 

5.  Corporations  organized  under  this  section  may  change  their  name 
to  conform  hereto. 

Division   of  towns. 

6.  The  subsequent  division  of  the  territory  of  the  towns  mentioned 
in  the  articles  into  new  towns  shall  not  impair  any  power,  duty  or  lia- 
bility of  such  corporation. 

Copies  to  commissioner. 

7.  A  copy  of  the  articles,  by-laws,  policy,  and  of  each  blank  used  by 
any  such  company  shall  be  furnished  to  and  filed  and  preserved  by  the 
commissioner  of  insurance. 

Section  1927  is  referred  to  in  sections  lS9Giii,  VMlm,  W.',la—3,  19iSni,  191,(>m. 

Curative  act;  action  of  town  mutuals. 
Section  1927m.  The  action  of  any  town  mutual  insurance  company 
organized  under  section  1927  of  the  statutes,  taken  prior  to  March  1, 
1915,  attempting  to  amend  its  articles  of  organization,  is  hereby  vali- 
dated. The  commissioner  of  insurance  and  the  attorney-general  are 
authorized  to  approve  such  amendments  made  prior  to  said  day,  and 
the  same  may  be  filed  and  recorded  as  provided  by  law,  notwithstand- 
ing  any  informality  or  insufficiency  in  the  petition,  notice,  time  of  meet- 
ing, voting,  or  any  other  respect,  or  in  the  certification  thereof,  pro- 
vided it  shall  appear  by  the  certificate  of  the  president  and  secretary 
to  the  satisfaction  of  the  commissioner  of  insurance  and  of  the  attor- 
ney-general, expressed  by  their  approval  thereof  under  this  section, 
that  notice  of  intention  to  amend  the  articles  was  given  not  less  than 
one  week  prior  to  action  thereon,  and  that  at  such  meeting  or  adjourned 
session  thereof,  such  amendment  was  duly  voted  upon  and  adopted 
by  four-fifths  of  the  votes  cast  upon  the  question. 

IVlanner  of  choosing  directors;    manner  of  voting;    quorum;    classi- 
fication. 

Sectiox  1928.  1.  The  directors,  subsequent  to  the  first  board,  shall  be 
chosen  by  ballot  at  the  annual  meeting  of  the  corporation  which  shall 
be  held  on  the  first  Tuesday  after  the  first  Monday  of  January,  unless 
some  other  day  be  fixed  therefor  by  a  majority  of  the  votes  cast  at 
any  annual  meeting.  *  *  *  Ten  or  more  policyholders  present  at 
any  annual  or  other  regularly  called  meeting  of  the  corporation  shall 
constitute  a  quorum  for  the  transaction  of  business. 

2.  Each  person  insured  shall  have  one  vote  for  each  two  hundred 
dollars  for  which  he  is  insured,  at  such  election  and  in  the  transac- 
tion of  all  other  business  of  the  corporation.  But  no  person  shall  vote 
by  proxy  except  women,  and  no  person  shall  have  the  right  to  vote 
more  than  one  proxy. 


1931  70  Ch.  89 

3.  The  corporation  may  by  a  two-thirds  vote  of  the  votes  cast  at  any 
annual  meeting,  adopt  a  resolution  providing  that  its  board  of  direc- 
tors shall  consist  of  nine  persons;  that  they  shall  be  divided  into 
three  classes  of  three  persons  each,  and  be  designated  as  the  first, 
second  and  third  classes.  Thereafter  the  directors  of  the  first  class 
shall  be  elected  for  one  year,  those  of  the  second  class  for  two,  and 
those  of  the  third  class  for  three  years,  and  in  each  case  hold  office 
until  their  successors  are  qualified,  and  thereafter  all  elections  shall 
be  for  three  years,  except  that  vacancies  shall  be  filled  for  the  unex- 
pired term.  Provided,  that  any  such  corporation  may,  by  a  resolution 
adopted  by  two-thirds  of  the  votes  cast  at  any  annual  meeting,  elect  to 
give  to  each  member  one  vote  at  such  election  and  in  the  transaction 
of  all  other  business  of  the  corporation. 

Directors'  terms;  place  of  meeting. 
Section  1929.  The  directors  shall,  unless  the  corporation  otherwise 
direct,  in  accordance  with  the  preceding  section  hold  their  office  for 
one  year  and  until  their  successors  are  elected.  They  shall  choose 
from  their  number  a  president,  secretary  and  a  treasurer,  the  latter 
of  whom  may  be  chosen  from  members  of  the  company,  and  keep  a 
record  of  all  their  proceedings  in  a  book  kept  for  that  purpose  together 
with  the  names  and  places  of  residence  of  all  persons  insured  and  the 
amount  for  which  each  is  insured  which  shall  be  open  for  inspection 
of  all  members  of  the  corporation  from  nine  o'clock  in  the  forenoon 
to  four  o'clock  in  the  afternoon  of  such  days  of  each  week  as  may  be 
determined  by  its  annual  meeting.  The  board  of  directors  may  change 
the  place  of  the  annual  meeting  of  the  corporation  to  any  town  inside 
the  boundary  of  its  corporate  limits  notwithstanding  its  by-laws  may 
designate  some  particular  town  as  the  place  for  holding  such  meeting. 

Treasurer's  bond. 
Section  1930.  The  treasurer,  before  entering  upon  the  duties  of  his 
office,  shall  execute  to  such  corporation  and  file  with  the  secretary  a 
bond  conditioned  for  the  faithful  discharge  of  the  duties  of  his  office, 
with  two  or  more  securities,  in  such  sum,  not  less  than  five  thousand 
dollars,  as  the  directors  may  order,  such  bond  and  sureties  to  be  ap- 
proved by  the  president  and  a  majority  of  the  directors. 

Territory;    property  insured  in  cities  and  villages. 

Section  1931.  1.  (a)  No  such  corporation  shall  Insure  any  property 
outside  of  the  territory  described  in  its  articles  of  incorporation  or  any 
resolution  adopted  pursuant  to  the  former  law  extending  such  territory, 
or  any  amendment  to  its  articles. 

(b)  Any  city  or  incorporated  village  within  or  adjoining  any  town 
belonging  to  such  territory,  may  be  included  therein  or  added  thereto, 
the  same  as  any  other  town,  but  such  city  or  village  shall  not  be 
counted  in  determining  the  number  of  towns  under  which  such  corpora- 
tion may  do  business.  Any  such  company  now  transacting  business 
in  any  such  city  or  village,  now  existing  or  hereafter  organized,  with- 


Ch.  89  71  1931—3 

out  the  same  being  included  in  its  territory,  as  hereinbefore  specified, 
may  nevertheless  continue  to  do  business  therein  until  the  first  day  of 
July,  1914,  or  until  the  second  annual  meeting  after  the  organization 
of  such  city  or  village.  Unless  the  article  be  so  amended  to  specifically 
include  such  city  or  village,  no  insurance  shall  be  effected  therein  after 
the  time  above  mentioned. 

(c)  No  property  shall  be  insured  in  any  such  city  or  village  except 
farm  property  or  detached  dwelling  houses  and  contents,  or  barns  or 
outbuildings  used  in  connection  with  such  dwelling  house  and  not 
used  for  trade  or  manufacturing,  and  the  contents  of  such  barns  or 
outbuildings. 

Risks;     kind;    single  maximum. 

2.  No  such  corporation  shall  insure  any  property  other  than  de- 
tached dwellings  and  their  contents,  farn;  buildings  and  their  contents, 
livestock  in  possession,  use  or  running  at  large,  farm  products  on 
premises  and  farming  tools,  implements  and  machinery;  providing  that 
it  may,  when  its  directors  shall  be  so  authorized  at  any  annual  meet- 
ing, insure  property  in  any  of  the  following  classes,  in  an  amount  not 
exceeding  five  thousand  dollars  on  any  single  risk,  to  wit:  (1)  country 
stores,  (2)  schoolhouses,  (3)  town  and  society  halls,  (4)  churches, 
(5)  county  hotels,  (6)  water  mills,  (7)  blacksmith  shops,  (8)  cheese  fac- 
tories, (9)  creameries,  and  the  contents  of  any  such  buildings. 

Motor  vehicles. 

2m.  Such  corporation  may  also  insure  automobiles  and  motor-driven 
vehicles  for  any  member  having  other  property  insured  in  such  cor- 
poration, against  loss  or  damage  by  fire  and  lightning;  provided,  that 
such  automobilp  or  vehicle  shall  be  separately  mentioned  and  de- 
scribed in  the  policy.  No  such  insurance  shall  be  effected  until  au- 
thorized by  the  board  of  directors  or  by  a  by-law  adopted  at  an  an- 
nual meeting  or  at  a  meeting  specially  called  for  that  puiT)ose;  pro- 
vided, that  any  corporation  heretofore  effecting  insurance  upon  auto- 
mobiles or  such  vehicles  may  continue  to  do  so  until  otherwise  ordered 
at  any  annual  or  special  meeting,  and  such  insurance  heretofore  ef- 
fected is  hereby  legalized. 

May  assume  cyclone  risk. 

3.  And  it  may  at  such  time  authorize  its  directors  to  insure  any 
of  the  classes  of  property  herein  mentioned  against  damage  or  loss 
by  wind  storms,  cyclones  and  tornadoes,  under  the  same  rules  and 
restrictions  as  relate  to  insurance  by  it  against  damage  or  loss  by  fire; 
provided,  that  a  request  in  writing,  signed  by  at  least  ten  members 
of  the  corporation,  be  filed  with  the  secretary  at  least  thirty-five  days 
before  the  next  annual  meeting  of  the  corporation  requesting  that  the 
question  of  insuring  against  damage  or  loss  by  wind  storms,  cyclones 
and  tornadoes  be  submitted  at  such  meetings,  and  that  the  secretary 


1933  72  Ch.  ^9 

give  thirty  days'  notice  by  mail  to  each  member  ol:  the  corporation  at 
his  post-office  address,  that  said  question  will  be  submitted  at  such 
meeting. 

Limitation  of  recovery. 

4.  Such  corporation  may,  by  a  provision  contained  in  the  policy, 
limit  the  recovery  as  to  any  or  all  items  of  personal  property  insured 
by  the  policy  to  not  exceeding  such  proportion  of  the  loss  or  damage, 
as  shall  be  specified  in  the  policy. 

Corporation  may  loan  money. 

5.  In  addition  to  the  investments  authorized  by  sections  1902  and 
1903,  any  such  corporation  may  loan  money  on  notes  due  in  one  year 
or  less,  signed  by  two  persons  who  shall  each  own  real  estate,  worth 
the  amount  of  the  notes  above  exemptions,  mortgages  and  other  liens, 
and  located  within  the  territory  of  such  corporation. 

Section  1931  is  referred  to  in  section  1932. 

Reinsurance. 
Sectiox  1931a.  Any  such  corporation  may,  at  any  annual  meeting 
or  special  meeting  thereof  convened  for  that  purpose,  authoi-ize  its 
board  of  directors  to  effect  reinsurance  in  some  other  town  insurance 
company  of  this  state,  doing  business  in  the  same  or  adjoining  terri- 
tory and  in  like  manner  to  reinsure  similar  risks  of  any  other  such 
corporation. 

Terms  of  policies;  approval  of  form. 
Section  1932.  The  board  of  directors  may  issue  policies,  signed  by 
the  president  and  secretary,  agreeing  in  the  name  of  the  corporation 
to  pay  the  insured  all  loss  or  damage  of  and  to  the  property  mentioned 
and  described  therein  which  may  be  occasioned  by  either  of  the  causes 
mentioned  in  section  1931,  and  providing  for  such  conditions  of  insur- 
ance as  may  be  determined  by  the  by-laws  of  such  corporation  or  by 
the  resolutions  of  its  annual  meeting;  but  no  such  corporation  shall 
make  or  execute  any  policy  until  the  blank  form  for  the  same  have 
been  submitted  to  and  approved  by  the  commissioner  of  insurance; 
provided,  that  no  such  company  shall  be  required  to  use  the  standard 
policy;  and  the  said  board  or  a  committee  of  not  less  than  three,  at 
least  two  of  whom  shall  be  dii-ectors,  or  the  corporation  may -classify 
the  property  insured  at  the  time  of  issuing  policies  thereon  under  dif- 
ferent rates,  corresponding  as  near  as  may  be  to  the  greater  or  less 
risk  which  may  attach  to  such  property. 

Liabilities  of  members. 
Section  1933.  Every  person  to  whom  any  such  policy  is  issued  shall 
be  deemed  a  member  of  such  corporation,  and  shall  give  his  under- 
taking, bearing  even  date  with  such  policy,  binding  himself,  his  heirs 
and  assigns  to  pay  his  pro  rata  share  to  the  corporation  of  all  losses 
or  damages  which  may  be  sustained  by  any  member  thereof,  and  of 
it.s    necessary    business    expenses,    together    with    all    legal    costs    and 


Ch.  S9  73  1935 

charges  incurred  in  case  legal  proceedings  are  commenced  to  collect 
any  assessment  made  upon  him;  and  every  such  undertaking  shall, 
within  ten  days  after  its  acceptance,  be  filed  in  the  office  of  the  secre- 
tary and  shall  remain  on  file  in  such  office  except  when  required  to  be 
produced  in  court  as  evidence.  He  shall  also,  at  the  time  of  effecting 
such  insurance,  pay  such  percentage  in  cash  and  such  reasonable  sums 
for  a  policy  as  may  be  required  by  the  rules  or  by-laws. 

Notice  and  adjustment  of  loss. 

Section  1934.  Every  member  of  such  corporation  who  may  sustain 
loss  or  damage  from  any  cause  insured  against  shall  immediately  notify 
the  president,  or  in  his  absence  the  secretary  thereof,  who  shall  forth- 
with convene  the  directors,  whose  duty  it  shall  be,  when  so  convened, 
to  appoint  a  committee  of  not  less  than  three  nor  more  than  five  mem- 
bers of  such  corporation,  except  in  case  the  loss  is  supposed  to  be  less 
than  three  hundred  dollars  when  the  president  and  secretary  may  ap- 
point such  committee,  to  ascertain  the  amount  of  such  loss  or  damage; 
provided,  that  when  any  such  loss  or  damage  does  not  exceed  one  hun- 
dred dollars  the  president  and  secretary  may,  in  their  discretion,  ad- 
just the  same  without  the  appointment  of  any  such  committee;  and 
provided  further,  that  the  board  of  directors  may  appoint  a  committee 
of  not  less  than  three  members  of  the  corporation  for  the  adjustment 
of  all  losses  that  may  occur  during  the  year;  and  in  case  of  the  in- 
ability of  the  parties  to  agree  upon  the  amount  of  such  loss  or  damage 
the  claimant  may  appoint  one  disinterested  person  on  his  part,  and 
upon  receiving  notice  from  such  claimant  of  such  appointment  the 
president  of  the  corporation  shall  forthwith  appoint  a  member  of  such 
corporation,  and  the  two  persons  so  appointed  shall  forthwith  proceed 
to  appoint  a  third  person  who  shall  be  disinterested,  and  the  three  per- 
sons so  appointed  shall  constitute  a  committee  of  reference,  who  shall 
have  full  authority  to  examine  witnesses  and  determine  all  matters  in 
dispute,  and  shall  make  their  award  to  the  president,  or  in  his  absence 
to  the  secretary  of  such  corporation,  which  award  thereon  shall  be 
final.  The  said  committee  of  reference  shall  each  be  allowed  two  dol- 
lars per  day  for  each  day's  service  so  rendered  and  five  cents  per  mile 
for  each  mile  necessarily  traveled  in  the  discharge  of  such  duties, 
which  shall  be  paid  by  the  claimant,  unless  the  award  of  said  commit- 
tee shall  exceed  the  sum  offered  by  the  corporation  in  liquidation  of 
such  loss  or  damage,  in  which  case  the  said  expense  shall  be  paid  by 
said  corporation.  Before  entering  upon  their  duties  each  member  of 
said  committee  shall  be  duly  sworn  to  faithfully  and  impartially  dis- 
charge the  duties  thereof.  The  secretary  of  any  such  corporation  may 
administer  any  oaths  and  take  any  acknowledgments  necessary  to  ad- 
just claims  against  his  company;  provided,  that  he  shall  receive  no 
compensation  for  such  service. 

Assessments;    notices;    nonpayment;    borrowing  money. 

Section  1935.  1.  Whenever  the  amount  of  any  loss  so  ascertained 
shall  exceed  the  amount  of  the  cash  funds  of  the  corporation  the  presi- 


1935—3  74  Ch.  89 

dent  shall  convene  the  board  of  directors,  who  shall  make  an  assess- 
ment upon  all  property  insured  by  it,  at  the  time  of  the  loss,  in  pro- 
portion to  the  amount  thereof  and  the  rate  under  which  it  may  have 
been  classified,  sufficient  at  least  to  pay  such  loss;  provided,  that  such 
board  may  assess  up  to  three  and  a  half  mills  even  if  such  loss  should 
not  require  such  an  amount.  The  board  of  directors  may  also  levy  an 
assessment  at  any  time  for  the  purpose  of  carrying  on  the  business  of 
the  company,  regardless  of  whether  or  not  a  loss  has  occurred.  When 
any  assessment  shall  have  been  completed  the  secretary  shall  imme- 
diately insert  a  notice  in  one  or  more  newspapers  printed  in  the  county 
or  counties  where  such  a  corporation  is  doing  business,  stating  therein 
the  time  when  such  assessment  was  levied  and  the  time  when  the  same 
becomes  due.  Such  notice  together  with  the  proof  of  the  publication 
thereof  shall  be  conclusive  evidence  of  notice  of  such  assessment  to 
every  member  of  the  corporation.  The  secretary  shall  also  notify 
every  such  member  by  letter  or  postal  card  sent  to  his  usual  post-office 
address,  of  the  amount  of  such  loss,  or  assessment,  and  the  sum  due 
from  him  as  his  share  thereof,  and  the  time  when  and  to  whom  pay- 
ment thereof  is  to  be  made,  which  time  shall  not  be  less  than  thirty  nor 
more  than  sixty  days  from  the  date  of  such  notice.  If  the  insurance 
under  any  policy  is  payable  to  a  mortgagee  and  the  assessment  thereon 
is  not  paid  within  the  time  specified  in  the  notice  to  the  member,  the 
secretary  shall  within  *  *  *  thirty  days  after  the  expiration  of  such 
time  give  like  notice  to  the  mortgagee.  The  mortgagee  shall  have 
twenty  days  from  the  date  of  such  notice  to  pay  the  assessment  and 
the  policy,  as  to  his  interest,  shall  be  in  full  force  until  the  expiration 
of  that  time. 

2.  The  treasurer  or  person  designated  to  receive  such  money  may 
demand  and  receive  two  per  cent  in  addition  to  the  amount  of  each 
such  assessment  for  his  fees  in  receiving  and  paying  over  the  same. 
Such  assessment,  when  collected,  shall  be  paid  to  the  person  entitled 
thereto  according  to  the  terms  of  the  policy  issued  to  him.  The  cor- 
poration may  borrow  money  without  the  levy  of  an  assessment  at  the 
time  of  such  loan,  on  the  condition  that  such  money  be  used  to  pay 
losses  incurred  on  or  after  the  first  day  of  November  preceding,  and 
that  an  assessment  or  assessments  to  cover  such  losses  be  levied  be- 
fore the  first  day  of  November  following,  upon  all  persons  insured  at 
the  time  such  losses  were  incurred.    No  such  loan  shall  be  renewed. 

3.  Every  member  who  shall  neglect  or  refuse  to  pay  such  assessment 
aX  the  time  specified  in  the  notice  sent  to  him,  shall  pay  to  such  cor- 
poration a  fine  of  two  per  cent  of  the  amount  of  such  assessment  for 
each  week  or  part  thereof  during  which  the  same  shall  remain  unpaid, 
and  no  payment  shall  be  made  by  any  company  upon  the  policy,  of  any 
member,  hereafter  written,  who  shall  sustain  a  loss,  if  such  member, 
at  the  time  of  such  loss,  shall  be  in  default  and  shall  have  neglected 
or  refused  to  pay  such  assessment  at  the  expiration  of  thirty  days  from 
the  time  specified  in  said  notice  sent  to  him. 


Ch.  89  75  1939 

Actions  to  collect  assessments;    directors'  liability. 

Section  1936.  An  action  at  law  may  be  brought  against  any  member 
of  such  corporation  who  shall  refuse  or  neglect  to  pay  any  such  assess- 
ment made  upon  his  insured  property.  The  directors  of  any  such  cor- 
poration who  shall  wilfully  neglect  or  refuse  for  thirty  days  to  perform 
the  duties  imposed  upon  them  either  in  this  or  the  next  preceding  sec- 
tion shall  be  jointly  and  severally  liable  in  their  individual  capacity 
to  the  person  sustaining  such  loss. 

Withdrawal;  cancellation. 
Section  1937.  Any  member  of  such  corporation  may  withdraw  there- 
from at  any  time  by  returning  his  policy  with  a  request  for  its  con- 
cellation  written  thereon  or  by  a  notice  in  writing  over  his  own  signa- 
ture properly  witnessed  (one  witness)  to  the  president  or  in  his  ab- 
sence to  the  secretary  thereof  and  paying  his  share  of  all  claims  then 
existing  against  said  corporation.  And  the  directors,  or  a  majority 
thereof,  or  such  and  so  many  of  them  as  they  may  have  appointed  as 
a  committee  for  such  purpose,  shall  have  power  to  annul  any  policy  by 
giving  notice  in  writing  to  that  effect  to  the  holder  thereof. 

Secretary  and  treasurer's  report. 
Section  1938.  The  secretary  of  every  such  corporation  shall  annual- 
ly prepare  a  statement  showing  its  condition  on  the  thirty-first  day  of 
December  preceding  its  annual  meeting,  which  shall  specify  the  whole 
number  of  policies  issued,  the  whole  number  then  in  force,  the  aggre- 
gate amount  then  insured,  the  amount  of  losses  paid  during  the  year, 
the  amount  of  losses  sustained  and  unpaid,  if  any,  and  all  such  other 
matters  as  required  by  the  by-laws.  The  treasurer  of  every  such  cor- 
poration shall  annually  prepare  a  statement  of  its  financial  condition 
on  the  thirty-first  day  of  December  preceding  its  annual  meeting, 
showing  amount  on  hand  January  first  preceding,  amount  received  dur- 
ing  the  year  from  premiums,  amount  received  from  each  separate  as- 
sessment, amount  received  from  any  other  sources,  amount  paid  for 
losses,  amount  paid  for  expenses,  giving  a  detailed  statement  of  every 
item  of  expenses,  and  amount  of  cash  on  hand.  Such  statements  or  so 
much  thereof  as  said  corporation,  at  its  annual  meeting,  may,  by  reso- 
lution or  otherwise,  agree  upon  shall  be  read  to  the  members  at  such 
meeting  and  entered  at  length  upon  the  records.  The  company  shall 
also  on  or  before  the  thirty-first  day  of  January  in  each  year  make  and 
file  such  report  for  the  preceding  year  with  the  commissioner  of  in- 
surance. 

Nonresident  members. 
Section  1939.     A  nonresident  of  any  town,  owning  insurable  property 
therein,  may  become  a  member  of  any  such  corporation  authorized  to 
insure  property  in  such  town  and  shall  be  entitled  to  all  the  rights  and 
privileges  of  such  member. 


19ila—3  76  Ch.  89 

Risks;  territory;  amendment  to  articles;  exception. 
Section  1940.  Any  such  corporation  may  attach  any  adjoining  town 
or  towns  as  part  of  its  territory  in  which  it  may  thereafter  do  business; 
provided  the  town  or  towns  so  attached,  together  with  those  already 
within  its  jurisdiction,  shall  not  exceed  thirty,  except  in  cases  where  all 
such  towns  shall  be  within  the  same  county.  No  town  or  towns  shall 
be  so  attached  except  by  amendment  to  the  articles  of  organization; 
provided  nothing  herein  contained  shall  affect  any  company  already  do- 
ing business  outside  of  the  county  in  which  it  is  organized. 

How  brougiit  in. 
Section  1941.  All  town  insurance  corporations  heretofore  organized 
under  any  law  shall  be  deemed  to  be  organized  under  and  governed  by 
the  provisions  of  the  laws  of  this  state;  and  such  existing  corpora- 
tions shall,  without  reorganization,  be  authorized  to  insure  in  sucli 
town  or  towns  as  they  may  have  heretofore  effected  insurance  in,  not 
exceeding  in  all  twenty  adjoining  towns;  but  each  such  corporation  de- 
siring to  extend  its  territory  beyond  the  town  or  towns  in  which  it 
was  originally  organized  shall,  within  six  months  after  the  adoption  of 
these  statutes,  file  in  the  office  of  the  county  clerk  of  the  county  in 
which  its  office  is  located  a  declaration  signed  by  its  president  and  sec- 
retary and  duly  acknowledged  by  them,  naming  the  town  or  towns  in 
which  it  has  heretofore  transacted  the  business  of  insurance  and  de- 
claring its  intention  to  continue  its  business  in  such  towns  thereafter. 

Reinsurance  mutuals;  organization. 
Section  1941a — 1.  Any  number  of  town  mutual  fire  insurance  com- 
panies organized  under  the  laws  of  this  state,  not  less  than  nine  in 
number,  who  collectively  carry  fire  insurance  risks  aggregating  not 
less  than  ten  million  dollars  may  form  themselves  into  a  corporation 
for  mutual  reinsurance  against  loss  or  damage  by  fire  or  lightning. 

Members;  representatives. 
Section  1941a — 2.  Any  town  mutual  fire  insurance  company  may,  at 
its  annual  meeting,  or  at  a  special  meeting  called  for  that  purpose,  by 
resolution  duly  adopted,  vote  to  become  a  member  of  a  reinsurance  cor- 
poration to  be  organized  under  this  chapter.  The  secretary,  or  in  case 
of  his  inability  the  president,  of  such  town  company  shall  thereupon 
be  authorized  to  represent  such  town  company  in  forming  and  organiz- 
ing such  reinsurance  corporation;  and  shall  in  all  matters  represent 
such  town  company  in  said  reinsurance  corporation. 

Directors;    risks. 

Sectio.x  1941a — 3.  The  affairs  of  said  reinsurance  corporation  shall 
be  managed  by  a  board  of  nine  directors  who  shall  be  chosen  by  the 
representatives  of  the  town  companies  composing  such  reinsurance 
corporation  from  among  their  number. 

Such  reinsurance  corporation  shall  have  power  to  reinsure  the  risks 
of  any  of  the  town  mutual  fire  insurance  companies  composing^such  re- 


Ch.  89  77  1941g 

insurance  corporation;  and  such  town  mutual  fire  insurance  companies 
are  authorized  to  effect  reinsurance  of  their  risks  in  said  reinsurance 
corporation. 

The  provisions  of  sections  1927  to  1941,  inclusive,  of  the  statutes, 
together  with  all  amendments  at  any  time  made  thereto,  shall,  so  far 
as  applicable,  apply  to  the  organization,  management,  powers,  rights, 
privileges,  duties  and  burdens  of  such  reinsurance  corporation  and  the 
members  thereof,  and  the  relations  of  such  members  with  each  other 
and  with  such  reinsurance  corporation,  and  the  manner  of  withdrawal 
of  members  therefrom. 

Members;    town  mutuals. 

Section  1941a — 4.  After  any  reinsurance  corporation  shall  have  been 
duly  organized  under  the  provisions  of  sections  1941a — 1  to  1941a — 4, 
inclusive,  any  town  mutual  fire  insurance  company  may  become  a  mem- 
ber thereof  whenever  such  town  insurance  company  shall,  at  its  annual 
meeting,  or  at  any  special  meeting  called  for  that  purpose,  vote  to  ap- 
ply for  insurance  in  such  reinsurance  corporation;  and  when  such  ap- 
plication for  insurance  shall  be  accepted  and  approved  as  provided  by 
the  by-laws  of  said  reinsurance  corporation,  such  town  mutual  fire  in- 
surance company  shall  thereupon  be  a  member  of  said  reinsurance  cor- 
poration. 

Repeal;    domestic  stock  and  mutual  companies;     by-laws. 
Section  1941g.     1.   (a)    Sections  1896,  1897,  1898,  1899,  1900,  1901  and 
1907,  of  the  statutes,  relating  to  domestic  fire  and  marine  insurance 
companies,  are  repealed; 

(b)  Sections  1941a,  1941b,  1941c,  1941d,  1941e  and  1941f  of  the  stat- 
utes, relating  to  millers'  mutuals,  are  repealed; 

(c)  Sections  1941—1,  1941— la,  1941—3,  1941—8  and  1941—13  of  the 
statutes,  relating  to  village  mutuals,  are  repealed; 

(d)  Sections  1941—14,  1941—15,  1941—16,  1941—17,  1941—18,  1941— 
19,  1941—20,  1941—21  and  1941—22  of  the  statutes,  relating  to  drug- 
gists' mutuals,  are  repealed; 

(e)  Sections  1941— 22a,  1941— 22b,  1941— 22c,  1941— 22d,  1941— 22e, 
1941— 22f,  1941— 22g,  1941— 22h,  and  1941-221  of  the  statutes,  relating 
to  plate  glass  mutuals,  are  repealed; 

(f)  Sections  1941—23,  1941—24,  1941—25,  1941—26,  1941—27,  1941— 
27a,  1941—28,  1941—29,  1941—30,  1941—31  and  1941—32  of  the  statutes, 
relating  to  church  mutuals,  are  repealed ; 

(g)  Sections  1941—33,  1941—34,  1941—35,  1941—36,  1941—37,  1941— 
38,  1941—39,  1941—40  and  1941—41  of  the  statutes,  relating  to  lumber 
dealers'  mutuals,  are  repealed; 

(h)  Sections  1966—2,  1966—3,  1966—4,  1966—5,  1966—6,  1966—7, 
1966—8,  1966—9,  1966—10,  1966—11  and  1966—12  of  the  statutes,  relat- 
ing to  hail  and  cyclone  mutuals,  are  repealed; 

(i)  Sections  1966—13,  1966—14,  1966— 15,  1966— 16,  1966—17,  1966— 
19,  1966—20,  1966—21,  1966—22,  1966—23  and  1966—24  of  the  statutes, 
relating  to  live  stock  mutuals,  are  repealed; 


I94In  78  Ch.  89 

(j)  Sections  1966—25,  1966—26,  1966—27,  1966—28,  1966—29,  1966— 
30,  1966 — 31  and  1966 — 31a  of  the  statutes,  relating  to  domestic  casualty 
companies,  are  repealed; 

(k)  Sections  1966—41,  1966—43  and  1966—49  of  the  statutes,  relating 
to  casualty  companies,  are  repealed; 

(1)  Sections  1966—50,  1966—51,  1966—52,  1966—53  and  1966—54  of 
the  statutes,  relating  to  live  stock  business  mutuals,  are  repealed; 

(m)  Sections  1966—61,  1966—62,  1966—63,  1966—64,  1966—65,  1966— 
66,  1966—67,  1966—68,  1966—69,  1966—70  and  1966—71  of  the  statutes, 
relating  to  bicycle  mutuals,  are  repealed; 

(n)  Sections  1966—81,  1966—82,  1966—83,  1966—84,  1966—85,  1966— 
86,  1966—87  and  1966—88  of  the  statutes,  relating  to  bankers'  casualty 
mutuals,  are  repealed; 

(0)  Sections  1941—2,  1941—4,  1941—5,  1941—6,  1941—7,  1941— 7m, 
1941—9,  1941— 9m,  1941—10,  1941—11  and  1941—12  are  repealed. 

2.  From  and  after  the  repeal  of  the  foregoing  sections,  the  said  sec- 
tions shall  be  considered  as  a  part  of  the  by-laws  of  the  respective  cor- 
porations heretofore  organized  now  doing  business  under  the  provisions 
of  said  laws,  and  such  by-laws  shall  remain  in  force  except  as  hereby 
or  hereafter  changed  by  law  or  by  amendment  hereafter  adopted  to  the 
by-laws  by  such  corporation. 

3.  When  no  other  provision  is  made  for  the  amendment  of  the  by- 
laws of  such  corporation,  such  by-laws  may  be  amended  in  the  man- 
ner provided  in  paragraph  (b)  of  subsection  1  of  section  1897c. 

4.  Every  insurance  corporation  heretofore  organized  and  now  doing 
business  under  the  provisions  of  any  law  of  this  state  is  continued 
without  any  limitation  whatever  upon  the  duration  of  its  corporate 
existence,  notwithstanding  any  limitation  heretofore  imposed  by  law 
or  incorporated  into  its  articles  of  organization. 

Town  mutuals;  validating  provision;  filing  articles. 
Section  1941n.  Any  town  insurance  company  organized,  or  attempted 
to  be  organized  under  the  provisions  of  sections  1927  to  1941,  inclusive, 
of  the  statutes,  or  the  acts  of  which  said  sections  are  amendatory,  if 
doing  business  as  such  corporation  at  the  time  of  the  taking  effect  of 
this  act,  notwithstanding  the  term  of  duration  of  its  corporate  exis- 
tence has  expired,  the  invalidity  of  any  amendment  to  its  articles  of 
organization,  or  any  provision  or  provisions  of  law  may  not  have  been 
complied  with  in  such  organization,  shall  be  held  and  considered  to  be 
a  corporation  duly  organized  and  existing  under  the  sections  of  the 
statutes  aforesaid,  and  the  term  of  duration  of  any  such  corporation 
is  hereby  extended  without  any  limitation  whatever;  all  provided,  that 
the  said  corporation  shall  file  with  the  commissioner  of  insurance  a 
copy  of  its  articles  of  organization  and  any  amendments  thereto,  duly 
verified  as  such  by  the  affidavit  of  its  president  and  secretary,  and 
within  thirty  days  after  such  filing,  record  a  copy  thereof,  duly  certi- 
fied by  the  commissioner  of  insurance,  in  the  office  of  the  register 
of  deeds  of  the  county  in  which  the  home  office  of  said  corpora- 
tion is  located.     Thereupon  all  acts  of  such  corporation  are  validated. 


Ch.  89  79  lOilx 

Any  limitation  of  the  term  of  duration  of  any  corporation  organized 
under  the  sections  of  the  statutes  aforesaid,  whether  prescribed  by 
statute  or  in  the  articles  of  organization  or  any  amendment  thereto  is 
hereby  abrogated  and  such  corporation  shall  continue  without  any 
limitation  of  its  term  of  duration. 


STANDARD   FIRE   INSURANCE   POLICY 

Preparation  of  form. 
Section  1941x.  The  commissioner  of  insurance  shall  prepare  and 
file  in  his  office  a  printed  form  in  blank  of  a  policy  of  fire  insurance, 
containing  the  provisions,  agreements  and  conditions  specified  herein; 
and  such  form  shall  be  known  as  the  "Standard  Fire  Insurance  Policy 
of  the  State  of  Wisconsin."  Such  policy  form  shall  correspond  in  all 
respects  to  the  sample  hereto  attached. 


No. 


[Space  for  insertion  of  name  of  company  or  companies  issuing  the 
policy  and  other  matter  permitted  to  be  stated  at  the  head  of  the 
policy.] 


Amount  $ Rate Premium  $ 

In  Consideration  of  the  Stipulations  herein  named 

and    of Dollars    Premium 

does  insure   

and  legal  representatives,  to  the  extent  of  the  actual  cash  value  (as- 
certained with  proper  deductions  for  depreciation)  of  the  property  at 
the  time  of  loss  or  damage,  but  not  exceeding  the  amount  which  it 
would  cost  to  repair  or  replace  the  same  with  material  of  like  kind 
and  quality  within  a  reasonable  time  after  such  loss  or  damage,  with- 
out allowance  for  any  increased  cost  of  repair  or  reconstruction  by 
reason  of  any  ordinance  or  law  regulating  construction  or  repair  and 
without  compensation  for  loss  resulting  from  interruption  of  business 

or  manufacture,  for  the  term  of 

from  the   day  of 19 ,  at  noon, 

to  the day  of 19 ,  at  noon, 

against  all  DIRECT  LOSS  AND  DAMAGE  BY  FIRE  and  by  removal 
from  premises  endangered  by  fire,   except  as  herein   provided,  to  an 

amount  not  exceeding    Dollars, 

to  the  following  described  property  while  located  and  contained  as  de- 
scribed herein,  or  pro  rata  for  five  days  at  each  proper  place  to  which 
any  of  the  property  shall  necessarily  be  removed  for  preservation  from 
fire,  but  not  elsewhere,  to  wit: 


19Hx  80  Ch.  89 

[Space  for  description  of  property.] 

This  policy  is  made  and  accepted  subject  to  the  foregoing  stipula- 
tions and  conditions,  and  to  the  stipulations  and  conditions  printed  on 
the  back  hereof,  which  are  hereby  made  a  part  of  this  policy,  together 
with  such  other  provisions,  stipulations  and  conditions  as  may  be  en- 
dorsed hereon  or  added  hereto  as  herein  provided. 

In  Witness  Whereof,  this  Company  has  executed  and  attested  these 
presents. 

[Space  for  date  and  for  signatures  and  titles  of  officers  and  agent.] 

1  This  entire  policy  shall  be  void  if  the  insured 

2  Fraud,  misrepre-     j^^g    concealed    or    misrepresented    any    ma- 
g  sentation,  etc.       terial  fact   or   circumstance  concerning  this 

4  insurance  or  the  subject  thereof;  or  in  case  of  any  fraud  or  false 

5  swearing   by    the    insured    touching    any    matter   relating    to   this 

6  insurance  or  the  subject  thereof,  whether  before  or  after  a  loss. 

7  This  policy  shall   not  cover  accounts,  bills, 

8  Uninsurable  currency,  deeds,   evidences   of  debt,   money, 

9  ^""^  notes  or   securities;    nor,  unless  specifically 

10  Excepted    property    named    hereon    in    writing,    bullion,    manu- 

11  scripts,  mechanical  drawings,  dies  or  patterns. 

12  This    Company   shall   not  be   liable   for   loss 

13  Hazards   not  ^^,  (j^mage  caused  directly  or   indirectly  by 

14  covered  invasion,     insurrection,     riot,    civil     war    or 

15  commotion,    or   military   or  usurped   power,    or   by   order   of   any 

16  civil  authority;    or  by  theft;    or  by  neglect  of  the  insured  to  use 

17  all  reasonable  means  to  save  and  preserve  the  property  at  and 

18  after    a    fire    or    when    the    property    is    endangered    by    fire    in 

19  neighboring  premises. 

20  This    entire    policy   shall    be    void,    unless    otherwise    provided 

21  by  agreement  in  writing  added  thereto, 

22  (a)  if  the  interest  of  the  insured  be  other  than 

23  Ownership,    etc.    unconditional   and    sole   ownership;    or    (b)    if 

24  the  subject  of  insurance  be  a  building  on  ground  not  owned  by 

25  the  insured  in  fee  simple;    or  (c)   if,  with  the  knowledge  of  the 

26  insured,   foreclosure   proceedings   be    commenced    or   notice   given 

27  of  sale  of  any  property  insured  hereunder  by  reason  of  any  mort- 

28  gage  or  trust  deed;  or  (d)  if  any  change,  other  than  by  the  death 

29  of  an  insured,  take   place  in   the  interest,  title  or  possession  of 

30  the    subject   of   insurajice    (except   change    of   occupants    without 

31  increase  of  hazard) ;  or  (e)  if  this  policy  be  assigned  before  a  loss. 

32  Unless     otherwise     provided     by    agreement     in     writing     added 

33  hereto    this    Company    shall     not    be    liable    for    loss    or    damage 

34  occurring 

35  (a)   while  the  insured  shall  have  any  other 
gg         Other  Insurance,    contract  of  insurance,  whether  valid  or  not, 

37  on  property  covered  in  whole  or  in  part  by  this  policy;  or 

38  (b)    while   the   hazard   is   increased   by   any 


Ch.  S9  81  1941x 

39  Increase  of  hazard,     means    within  tlie    control   or  knowledge   of 

40  the  insured;  or 

41  Repairs,  etc.         (c)while  mechanics  are  employed  in  building, 

42  altering  or  repairing  the  described  premises 

43  beyond  a  period  of  fifteen  days;  or 

44  (d)  while  illuminating  gas  or  vapor  is  gener- 

45  ^^  osives,  g^^gij   Qj^   |.j^g   described    premises;    or   while 

46  ^^^'   ®  *'■  (any  usage  or  custom  to  the  contrary  not- 

47  withstanding)    there   is   kept,   used   or  allowed   on  the  described 

48  premises   fireworks,   greek   fire,    phosphorus,   explosives,    benzine, 

49  gasoline,  naphtha  or  any  other  petroleum  product  of  greater  in- 

50  flammability    than    kerosene    oil,    gunpowder    exceeding    twenty- 

51  five  pounds,  of  kerosene  oil  exceeding  five  barrels;  or 

52  _  (e)  if  the  subject  of  insurance  be  a  manufac- 

53  Factories.  turing     establishment     while     operated     in 

54  whole  or  in  part  between  the  hours  of  ten  P.  M.  and  five  A.  M., 

55  or  while  it  ceases  to  be  operated  beyond  a  period  of  ten  days;  or 

56  (f)   while  a  described  building,  whether  in- 
__            Unoccupancy.        ^^      j   j  *  u  4.  ^    - 

57  f       J         tended  for  occupancy  by  owner  or  tenant,  is 

58  vacant  or  unoccupied  beyond  a  period  of  ten  days;  or 

59  .  (g)    by    explosion    or    lighting,    unless    fire 

60  ^^  osion,  ensue,  and,  in  that  event,  for  loss  or  dam- 
g^              Lightning.  ^^^  ^^  ^^^  ^^j^ 

62  Unless  otherwise  provided  by  agreement  in 

go        Chattel  mortgage,    ^j-iting    added    hereto    this    Company    shall 

64  not   be  liable  for  loss  or  damage  to  any  property  insured  here- 

65  under  while  incumbered  by  a  chattel  mortgage,  and  during  the 

66  time    of    such    incumbrance    this    Company    shall    be    liable   only 

67  for  loss  or  damage  to  any  other  property  insured  hereunder. 

68  _         If  a  building,  or  any  material  part  thereof, 

69  '^^"  °^  building,    ^^jj  except  as  the  result  of  fire,  all  insurance 

70  by  this  policy  on  such  building  or  its  contents  shall  immediately 

71  cease. 

72  The   extent   of  the  application   of   insurance 
^3           Added  clauses.      ^^^^^^,  ^-^^^  policy  and  of  the  contribution  to 

74  be  made  by  this  Company  in   case  of  loss  or  damage,  and  any 

75  other   agreement   not    inconsistent   with   or    a   waiver  of   any   of 

76  the  conditions  or  provisions  of  this  policy,  may  be  provided  for 

77  by  agreement  in  writing  added  hereto. 

78  .  No  one  shall  have  power  to  waive  any  pro- 
Wsi  vGr 

79  ■  vision  or  condition  of  this  policy  except  such 

80  as  by  the  terms  of  this  policy  may  be  the  subject  of  agreement 

81  added  hereto,  nor  shall  any  such  provision  or  condition  be  held 

82  to  be  waived  unless  such  waiver  shall  be  in  writing  added  hereto, 

83  nor  shall   any   provision   or   condition   of   this   policy  or  any  for- 

84  feiture  be  held  to  be  waived  by  any  requirement,  act  or  proceed- 

85  ing  on  the  part  of  this  Company  relating  to  appraisal  or  to  any 

86  examination  herein  provided  for;   nor  shall  any  privilege  or  per. 

6 


194  Ix  82  Ch.  89 

87  mission  affecting  the  insurance  hereunder  exist  or  be  claimed  by 

88  the  insured  unless  granted  herein  or  by  rider  added  hereto. 

89  .  This  policy  shall  be  cancelled  at  any  time 

90  Cancellation  ^^  ^^^  request  of  the  insured,  in  which  case 

91  policy.  j.j^g   Company   shall,   upon   demand    and   sur- 

92  render  of  this  policy,  refund   the  excess  of  paid  premium  above 

93  the    customary    short   rates   for    the    expired    time.     This    policy 

94  may  be  cancelled  at  any  time  by  the  Company  by  giving  to  the 

95  insured  a  five  days'  written  notice  of  cancellation  with  or  with- 

96  out   tender  of  the   excess   of   paid   premium   above   the   pro   rata 

97  premium   for  the    expired   time,   which    excess,    if   not   tendered, 

98  shall  be  refunded  on  demand.     Notice  of  cancellation  shall  state 

99  that  said  excess  premium   (if  not  tendered)   will  be  refunded  on 

100  demand. 

101  This    Company    shall    not    be    liable    for    a 

102  °  ""^^^  liability.      gj-eater   proportion    of   any    loss    or   damage 

103  than     the    amount    hereby    insured     shall    bear    to     the     whole 

104  insurance     covered     the     property,     whether    valid     or     not     and 

105  whether  collectible  or  not. 

106  The    word    "noon"    herein    means    noon    of 

107  ■  standard  time  at  the  place  of  loss  or  damage. 

108  If  loss  or  damage  is  made  payable,  in  whole 

109  Mortgage  ^j.  j^  part,  to  a  mortgagee  not  named  herein 

110  interests.  ^g  ^^^e  insured,  this  policy  may  be  cancelled 

111  as  to  such  interest  by  giving  to    such    mortgagee    a    ten    days' 

112  written   notice   of   cancellation.     Upon   failure   of   the   insured   to 

113  render  proof  or  loss  such  mortgage  shall,  as  if  named  as  insured 

114  hereunder,  but  within  sixty  days  after  notice  of  such  failure,  ren- 

115  der  proof  of  loss  and  shall  be  subject  to  the  provisions  hereof  as 

116  to  appraisal  and  times  of  payment  and  of  bringing  suit.     On  pay- 

117  ment  to  such  mortgagee  of  any  sum  for  loss  or  damage  here. 

118  under,  if  this  Company  shall  claim  that  as  to  the  mortgagor  or 

119  owner,  no  liability  existed,  it  shall,   to  the   extent  of  such   pay- 

120  ment   be    subrogated   to    the   mortgagee's   right   of   recovery   and 

121  claim    upon    the    collateral    to    the    mortgage    debt,    but    without 

122  impairing  the  mortgagee's  right  to  sue;    or  it  may  pay  the  mort- 

123  gage  debt  and  require  an  assignment  thereof  and  of  the  mortgage. 

124  Other  provisions  relating  to  the  interests  and  obligations  of  such 

125  mortgagee  may  be  added  hereto  by  agreement  in  writing. 

126  The  insured  shall  give  immediate  notice,  in 
J27       Requirements  in        writing,    to    this    Company,    of    any    loss    or 

128  ^^^^  °^  '°^®-  damage,   protect   the   property   from   further 

129  damage,     forthwith     separate     the     damaged     and     undamaged 

130  personal    property,    put   it   in   the   best   possible    order,    furnish    a 

131  complete    inventory   of   the   destroyed,    damaged    and    undamaged 

132  property,   stating  the   quantity  and   cost  of  each  article  and   the 

133  amount    claimed    thereon;     and,    the    insured    shall,    within    sixty 

134  days  after  the  fire,    unless  such  time    is  extended    in   writing   by 


Ch.  89  83  1941x 

135  this    company,    render   to    this   company    a    proof    of    loss,    signed 

136  and  sworn  to  by  the  insured,   stating  the  knowledge  and  belief 

137  of  the  insured  as  to  the  following:  the  time  and  origin  of  the  fire, 

138  the  interest  of  the  insured  and  of  all  others  in  the  property,  the 

139  cash  value  of  each  item  thereof  and  the  amount  of  loss  or  damage 

140  thereto,    all    incumbrances    thereon,    all    other    contracts    of    in- 

141  surance,    whether   valid    or    not,    covering    any    of   said    property, 

142  any  changes  in  the  title,  use,  occupation,  location,  possession,  or 

143  exposures  of  said  property  since  the  issuing  of   this  policy,  by 

144  whom   and  for  what  purpose  any  building  herein  described  and 
.145  the  several  parts  thereof  were  occupied  at  the  time  of  fire;  and 

146  shall  furnish  a  copy  of  all  the  descriptions  and  schedules  in  all 

147  policies  and  if  required,  verified  plans  and   specifications  of  any 

148  building,    fixtures    or    machinery    destroyed    or    damaged.      The 

149  insured,  as   often  as  may  be  reasonably   required,   shall   exhibit 

150  to  any  person  designated  by  this  Company  all  that  remains   of 

151  any    property    herein     described,    and    submit    to    examinations 

152  under    oath    by    any     person    named    by    this     Company,     and 

153  subscribe    the     same;     and,     as     often    as     may    be    reasonably 

154  required,    shall    produce    for   examination    all    books    of   account, 

155  bills,    invoices,    and    other   vouchers,    or    certified   copies    thereof, 

156  if  originals  be  lost,  at  such  reasonable   time  and  place  as  may 

157  be  designated  by  this  Company  or  its  representatives,  and  shall 

158  permit  extracts  and  copies  thereof  to  be  made. 

159  In  case  the  insured  and  this  Company  shall 

160  Appraisal.  ^.^^j  ^^  agree   as  to  the  amount  of  loss  or 

161  damage,    each    shall,    on    the    \vTitten    demand    of   either,    select 

162  a     competent     and     disinterested     appraiser.         The     appraisers 

163  shall    first    select    a    competent    and    disinterested    umpire;    and 

164  faiUng   for    fifteen    days    to    agree    upon    such    umpire    then,    on 

165  request  of  the   insured   or  this   Company,   such   umpire   shall   be 

166  selected  by  a  judge  of  a  court  of  record  in  the   state  in  which 

167  the    property    insured    is    located.      The    appraisers    shall    then 

168  appraise    the    loss    and    damage    stating    separately    sound   value 

169  and   loss   or  damage  to   each   item;    and   failing  to   agree,   shall 

170  submit    their    differences    only,    to    the    umpire.      An    award    in 

171  writing,   so  itemized,   of  any   two   when   filed  with  this   Company 

172  shall     determine     the     amount     of     sound     value     and     loss  or 

173  damage.     Each   appraiser   shall  be   paid   by  the   party   selecting 

174  him   and   the    expenses    of   appraisal   and   umpire   shall   be    paid 

175  by  the  parties  equally. 

176  It   shall  be   optional   with   this   company  to 

177  Company's  ^^-^^  ^^^^  ^^  ^^^  p^^.^    ^^  ^^^  articles  at  the 

178  options.  agreed    or    appraised    value,    and    also    to 

179  repair,    rebuild,    or   replace   the   property   lost   or   damaged   with 

180  other   of   like   kind    and    quality   within    a   reasonable    time,    on 

181  giving    notice    of    its    intention    so    to    do    within    thirty    days 

182  after    the    receipt    of    the    proof    of    loss    herein    required;     but 


1941—62  84  Ch.  S9 

183  there  can  be  no  abandonment  to  this  Com- 

jg4  Abandonment.       ^^^^  ^^  ^^^  property. 

185  ....         .  The   amount   of   loss   or   damage   for  which 
When   loss  ,        ^  ^      ,.   ,^,        ^    ,,    ^ 

186  .  .  this   Company   may   be   liable  shall   be   pay- 
payable 

187  able  SiXty  days  after  proof  of  loss,  as  herein 

188  provided,  is    received   by    this    Company    and    ascertainment    of 

189  the   loss   or  damage   is   made   either   by   agreement   between  the 

190  insured    and    this    Company    expressed    in    writing    or    by    ihe 

191  filing  with  this  Company  of  an  award  as  herein  provided. 

192  No   suit   or   action    on   this   policy,   for   the 

193  ®"'*"  recovery  of  any  claim,  shall  be  sustainable 

194  in    any    court   of   law  or    equity   unless    all    the    requirements   of 

195  this    policy    shall    have    been    complied    with,    nor    unless    com- 

196  menced  within  twelve  months  next  after  the  fire. 

197  This  Company  may  require  from  the  insured 

198  Subrogation.  ^^    assignment    of    all     right     of    recovery 

199  against  any   party  for   loss   or   damage   to   the   extent   that   pay- 

200  ment  therefor  is  made  by  this  Company. 

Standard   Fire   Insurance  Policy  of  the  State  of 

Expires 

Property 

Amount $ 

Premium -      -      -      % 

No 

It  is  important  that  the  written  portions  of  all  policies  covering  the 
same  property  read  exactly  alike.  If  they  do  not  they  should  be  made 
uniform  at  once. 

Sections  1941—42  to  1941—60.     [Repealed  62/  cli.  127,  1917]. 

Other  conditions. 
Section  1941 — 61.  If  this  policy  be  made  by  a  mutual  or  other  com- 
pany having  special  regulations  lawfully  applicable  to  its  organization, 
membership,  policies  or  contracts  of  insurance,  such  regulations  shall 
apply  to  and  form  a  part  of  this  policy  as  the  same  may  be  written  or 
printed  upon,  attached  or  appended  hereto. 

Section  I'Jffl — 61  is  referred   to   in   sees.   HK'il — 6'-},  19it — Go. 

Lightning  clause. 

Section  1941 — 62.  Every  fire  insurance  policy  issued  in  this  state 
shall  have  attached  thereto  a  clause  providing  that  the  policy  to  which 
it  is  attached  will  cover  the  property  insured  against  damage  result- 
ing from  lightning  whether  fire  ensues  or  not.  Failure  to  attach  such 
clause  shall  not  relieve  the  company  issuing  the  policy  from  liability 
for  such  damage. 


Ch.  89  85  1941—64 

Forms. 

Section  1941—63.     (Indorsements.) 

Assignment  of  Interest  by  Insured. 

The  interest  of as  owner  of  property  covered  by  this 

policy  is  hereby  assigned  to subject  to  the  consent  of 

(name  of  company). 

j)ated Signature  of  the  insured. 

Note. — To  secure  mortgages,  if  desired,  the  policy  should  be  made 
payable  on  its  face  to  such  mortgagee,  as  follows:  Loss,  if  any,  pay- 
able to  John  Doe,  mortgagee. 

Consent  by  Company  to  Assignment  of  Interest. 

(name  of  company)  hereby  consents  that  the  interest  of 

as  owner  of  the  property  covered  by  this  policy  be  assigned  to 


j)a^(-e(j Signature  for  company. 

Expires 

Property 

Am't  $ Premium  $ 

No 

It  is  important  that  the  written  portions  of  all  policies  covering  the 
same  property  read  exactly  alike.  If  they  do  not  they  should  be  made 
uniform  at  once. 

Part  of  fire  premiums  held  as  trust  fund. 
Section  1941— 63s.  Unless  otherwise  specified  in  an  indorsement  on 
the  policy,  which  is  hereby  authorized,  the  company  shall  hold  as  a 
deposit  in  trust  for  the  insured,  for  which  he  shall  have  a  preferred 
claim,  a  pro  rata  part  of  the  premiums  paid  on  every  standard  fire  in- 
surance policy. 

Standard  policy  form  exclusive;  exceptions. 
Section  1941—64.  1.  No  fire  insurance  company,  corporation  or  as- 
sociation, except  township  mutual  insurance  companies,  their  officers 
or  agents,  shall  make,  issue,  use  or  deliver  for  use  any  fire  insurance 
policy  on  property  in  this  state,  other  than  such  as  shall  conform  in 
all  particulars  as  to  blanks,  size  of  type,  context,  provisions,  agree- 
ments and  conditions  with  the  printed  forms  of  contract  or  policy  so 
filed  in  the  office  of  the  commissioner  of  insurance  as  provided  for  in 
sections  *  *  *  lOJflx  and  19^1—61  to  19U—G5,  all  inclusive,  and  no 
other  or  different  provision,  agreement,  condition  of  clause  shall  in 
any  manner  be  made  a  part  of  said  contract  or  policy,  or  be  indorsed 
thereon  or  delivered  therewith  except  as  follows,  to-wit: 


1941—64  86  Ch.  89 

Other  matter  permitted, 
a.  (1)  The  name  of  the  company,  (2)  its  location  or  place  of  busi- 
ness, (3)  the  date  of  its  incorporation  or  organization  and  the  state 
or  country  under  which  the  same  is  organized,  (4)  the  amount  of 
paid-up  capital  stock,  (5)  whether  it  is  a  stock  or  mutual  company, 
(6)  the  name  of  its  officers,  (7)  the  number  and  (8)  date  of  the 
policy,  and,  (9)  if  it  be  issued  through  a  manager  or  agent  of  the  com- 
pany, the  words   "this  policy  shall   not  be  valid  until  countersigned 

by  the  duly  authorized  manager  or  agent  of  the  company  at ," 

may  be  printed  on  policies  issued  on  property  in  this  state. 

Schedules;  conditions. 
Section  1941 — 64.  2.  Printed  or  written  forms  of  description  and 
specifications  or  schedules  of  the  property  covered  by  any  particular 
policy,  and  any  other  matter  necessary  to  clearly  express  all  the  facts 
and  conditions  of  insurance  on  any  particular  risk  (which  facts  or  con- 
ditions shall  in  no  case  be  inconsistent  with  or  a  waiver  of  any  of  the 
provisions  or  conditions  of  the  standard  policy  herein  provided  for), 
may  be  written  upon  or  attached  or  appended  to  any  policy  issued  on 
property  in  this  state.  Nothing  in  this  section  shall  be  construed  as 
prohibiting  the  attachment  to  said  policy  of  a  clause  or  agreement 
insuring  against  consequential  loss  or  damage  including  loss  of  rents, 
leasehold  interests,  profits  or  commission  or  loss  resulting  from  inter- 
ruption of  business  or  manufacture  due  to  fire. 

Other  provisions  required  by  law. 

3.  A  company,  corporation  or  association  organized  or  incorporated 
under  and  in  pursuance  of  the  laws  of  this  state  or  elsewhere,  if  en- 
titled to  do  business  in  this  state,  may,  with  the  approval  of  the  com- 
missioner of  insurance,  if  the  same  is  not  already  included  in  the 
standard  form  as  provided  for  in  said  sections,  print  on  its  policies 
any  provision,  which  it  is  required  by  law  to  insert  therein,  if  such 
provisions  be  not  in  conflict  with  the  laws  of  this  state  or  of  the 
United  States,  or  of  the  provisions  of  the  standard  form  provided  for 
herein,  but  any  such  provision  shall  be  printed  apart  from  the  other 
provisions,  agreements  or  conditions  of  the  policy,  and  in  t>'pe  not 
smaller  than  the  body  of  the  policy,  and  under  a  separate  title  as 
follows:  "Provisions  required  by  law  to  be  stated  in  this  policy,"  and 
be  a  part  of  said  policy. 

Agent's  name  and  place  of  business. 

4.  There  may  be  indorsed  on  the  outside  of  any  policy  herein  pro- 
vided for  the  name,  with  the  word  "agent"  or  "agents"  and  place  of 
business  of  any  insurance  agent  or  agents,  either  by  writing,  printing, 
stamping  or  otherwise. 

Joint  policies;    several  policies. 

5.  Where  two  or  more  companies  (each  having  previously  complied 
with  the  law  of  this  state)   unite  to  issue  a  joint  policy  there  may  be 


Ch.  59  87  1943 

expressed  (a)  in  the  heading  of  such  policy,  the  fact  of  the  severalty  of 
the  contract;  (b)  the  proportion  of  premium  to  be  paid  to  each  com- 
pany, (c)  the  proportion  of  liability  which  each  company  agrees  to 
assume,  and  (d)  in  the  printed  conditions  of  such  policy  the  necessary 
change  may  be  made  from  the  singular  to  the  plural  number,  when 
reference  is  had  to  the  companies  issuing  such  policy. 
Section  191tl — 6^  is  referred  to  in  sec.  I'Jkl — So. 

Unauthorized  insurance  void. 

Section  1941 — 64m.  1.  All  future  contracts  of  insurance  against  the 
risk  of  loss  or  damage  by  fire  or  lightning  upon  property  in  this  state 
shall  be  held  to  be  made  and  effected  within  this  state. 

2.  No  unauthorized  fire  insurance  company  or  other  unauthorized 
insurer  shall  hereafter  make  or  issue,  directly  or  indirectly,  any  policy 
of  insurance  on  property  in  this  state,  except  as  specifically  authorized 
by  law.  All  such  contracts  are  declared  to  be  unlawful,  void,  and  un- 
enforcible,  and  no  action  in  law  or  equity  shall  be  maintained  on  any 
such  contract  in  any  court. 

Violation  of  law;   bound  by  contract. 

Section  1941 — 65.  Any  insurance  company,  its  officers  or  agents  or 
either  of  them,  violating  any  provision  of  sections  1941x  and  1941 — 61 
to  1941—65,  inclusive,  by  making,  issuing,  delivering  or  offering  to 
deliver  any  policy  of  fire  insurance  on  property  in  this  state,  except 
as  herein  before  provided,  shall  be  guilty  of  a  misdemeanor  and  upon 
complaint  made  by  the  commissioner  of  insurance  or  any  citizen  of 
this  state  shall,  upon  conviction  thereof,  be  punished  by  a  fine  of  not 
less  than  fifty  dollars  nor  more  than  one  hundred  dollars  for  the  first 
offense,  and  of  not  less  than  one  hundred  dollars  nor  more  than  two 
hundred  and  fifty  dollars  for  each  subsequent  offense ;  but  any  policy  so 
made,  issued  and  delivered  shall,  nevertheless,  be  binding  upon  the 
.  company  issuing  the  same,  and  such  company  shall  thereafter  be  dis- 
qualified from  doing  any  insurance  business  in  this  state. 
Section  I'JJfl — 65  is  referred  to  in  19i3a. 


MISCELLANEOUS  PROVISIONS   RELATING  TO   FIRE   INSURANCE 

Policies;  what  to  show. 
Section  1942.  Every  insurance  corporation  doing  business  on  the 
mutual  plan  shall  contain  in  its  name,  which  shall  be  upon  the  first 
page  in  every  policy  or  renewal  receipt,  the  word  mutual,  and  if  doing 
business  as  a  cash  stock  corporation  it  shall,  upon  the  face  of  its  poli- 
cies, express  that  it  is  a  stock  policy. 

Valued  policy. 

Section  1943.    Whenever  any  policy  of  insurance  is  written  to  insure 

real  property  and  the  property  insured  is  wholly  destroyed,  without 

criminal  fault  on  the  part  of  the  insured  or  his  assigns,  the  amount  of 

the  insurance  written  in  such  policy  shall  be  taken  conclusively  to  be 


J943Tn  88  Ch.  89 

the  true  value  of  the  property  when  insured  and  the  true  amount  of 
loss  and  measure  of  damages  when  destroyed. 

Coinsurance  clauses. 

Section  1943a.  Except  as  otherwise  provided  by  law,  no  fire  insur- 
ance company  shall  issue  any  policy  in  this  state  containing  any  pro- 
vision limiting  the  amount  to  be  paid  in  case  of  loss  below  the  actual 
cash  value  of  the  property,  if  within  the  amount  for  which  the  pre- 
mium is  paid,  unless,  at  the  option  of  t^e  insured,  a  reduced  rate  shall 
be  given  for  the  use  of  a  coinsurance  clause  made  a  part  of  the  policy. 
The  rate  for  the  insurance,  with  and  without  the  coinsurance  clause, 
shall  be  specified  upon  every  policy.  Any  company  may,  by  so  provid- 
ing in  the  policy,  distribute  the  total  insurance  in  the  manner  and 
upon  as  many  items  as  specified  therein,  or  limit  the  amount  recoverable 
upon  any  single  item,  article,  or  animal  to  an  amount  not  exceeding 
the  cost  thereof,  or  to  an  amount  specified  in  the  policy.  Any  company, 
officer,  or  agent  violating  any  provision  of  this  section  shall  *  *  * 
upon  conviction  thereof,  be  punished  by  a  fine  of  not  less  than  one  hun- 
dred dollars  nor  more  than  five  hundred  dollars  and  the  license  of  such 
agent  and  company  viay  be  suspended  for  a  period  not  exceeding  one 
year. 

Establishment  of  rates. 

Section  1943b.  No  fire,  fire  and  marine,  or  marine  and  inland  in- 
surance company  or  association,  its  agent  or  representative  doing  busi- 
ness in  this  state  shall,  either  directly  or  indirectly,  enter  into  any  con- 
tract, agreement,  combination  or  compact  with  any  other  such  com- 
pany or  companies  or  its  or  their  agents  or  representatives  for  the 
purpose  of  establishing  and  maintaining  a  fixed  schedule  or  schedules 
of  rates;  except  such  agreements  as  are  specifically  authorized  by 
statutes,  or  such  as  may  be  filed  with  and  approved  by  the  commis- 
sioner of  insurance.  Any  such  approval  by  the  commissioner  of  in- 
surance may  be  withdrawn  at  any  time. 

Section  19J,3b  is  refei-red  to  in  B'fi — 11. 

Section  1943f.     [Repealed  by  ch.  461,  1917]. 

Authorized  fire  insurance  adjusters. 

Section  1943m.  1.  No  person,  other  than  an  agent  holding  a  cer- 
tificate of  authority  under  section  1976,  shall  make  any  adjustment  of 
loss  or  damage  under  an  insurance  policy  covering  hazard  described 
in  subsections  1,  2,  11,  12,  and  14  of  section  1897,  unless  he  shall  hold 
a  certificate  of  authority  from  the  commissioner  of  insurance  under 
this  section  or  after  making  the  first  adjustment  within  any  license 
year,  ma'ce  application  for  such  certificate  of  authority  as  provided  in 
this  section. 

2.  A  certificate  of  authority  as  a  fire  insurance  adjuster,  expiring 
January  thirty-first  following,  may  be  issued  to  any  person  filing  an 
application  on  a  form  prescribed  and  furnished  to  him  and  upon  the 
payment  of  a  license  fee  of  one  dollar. 


Ch.  S9  89  1943m 

3.  Such  certificate  of  authority  shall  be  revoked  by  the  commissioner 
of  insurance,  if  after  due  investigation  and  hearing  had  either  before 
himself  or  a  salaried  employe  of  the  insurance  department  designated 
by  him,  whose  report  he  may  adopt,  he  determines  that  the  holder  of 
such  certificate  has  violated  any  provision  of  the  law  relating  to  in- 
surance. No  person  whose  certificate  of  authority  is  so  revoked  shall 
be  granted  any  other  such  certificate  of  authority  under  this  section 
for  a  period  of  one  year  thereafter,  nor  shall  he  until  again  so  author- 
ized, act  as  employe  or  participate  in  the  profits  of  any  fire  insurance 
adjuster. 

4.  A  person  shall  not  be  held  to  violate  this  section  by  making  his 
first  adjustment  during  a  license  year  prior  to  obtaining  such  certificate 
of  authority,  provided  that  he  shall,  within  two  days  after  entering 
upon  such  adjustment,  make  application  therefor,  and  shall  in  all  other 
respects  comply  with  this  section. 

5.  Upon  the  completion  of  each  adjustment  of  loss  or  damage  by  fire 
a  report  thereof  upon  a  form  prescribed  by  the  commissioner  of  in- 
surance shall  be  made  and  signed  by  each  adjuster  participating  therein 
and  by  the  insured  or  some  one  authorized  thereto  on  his  behalf  and 
shall  be  filed  with  the  chief  of  the  fire  department  as  deputy  fire  mar- 
shal* or  if  none,  then  with  the  state  fire  marshal.  A  duplicate  thereof 
shall  be  filed  with  each  inspection  bureau  of  which  the  companies  effect- 
ing such  insurance  are  members. 

*Chiefs  of  fire  departments  are  constitued  deputies  of  the  industrial  com- 
mission by  ch.  SOI,  1917. 

6.  No  loss  shall  be  paid  by  any  company  unless  the  report  of  the 
adjustment  signed  by  the  adjuster  shall  show  that  the  report  and  the 
duplicates  required  by  this  section  have  been  filed. 

7.  The  deposit  of  such  report  in  the  mails,  properly  sealed,  addressed 
and  postpaid  shall  be  a  sufficient  filing. 

8.  This  section  shall  apply  to  and  include  all  persons  who  act  in 
the  capacity  as  specified  in  subsection  1  for  any  insurance  company 
or  insured  and  to  all  persons  who  act  as  advisory  to  or  adjusters  for 
the  insured  for  compensation  in  case  of  loss  or  damage  by  fire,  except- 
ing persons  acting  as  attorneys  in  the  ordinary  relation  of  attorney  and 
client. 

9.  No  compensation  which  shall  be  based  on  the  excess  of  recovery 
over  a  stipulated  sum,  or  on  a  percentage  upon  the  amount  of  recovery 
in  excess  of  five  per  cent  of  the  amount  of  such  recovery,  plus  actual 
transportation  charges  and  hotel  bills,  shall  be  paid  or  agreed  to  be 
paid  for  the  services  of  any  fire  insurance  adjuster,  and  any  contract 
for  compensation  in  violation  of  the  within  mentioned  conditions  shall 
be  void. 

10.  Subsection  1  of  this  section  shall  not  apply  to  adjusters  for  town 
mutual  companies  organized  under  section  1927  of  the  statutes.  The 
reports  of  adjustment  may  be  made  in  such  form  and  at  such  time  or 
times  as  prescribed  by  the  commissioner  of  insurance. 

11.  Any  person  convicted  of  violating  any  of  the  provisions  of  this 
section  shall  be  subject  to  a  fine  of  not  more  than  five  hundred  dollars 


1945c  90  Ch.  89 

for  each  violation  or  imprisonment  in  the  county  jail  for  a  period  not 
exceeding  six  months. 

Premium  notes;  how  made;  defenses. 
Section  1944.  Every  promissory  note  or  obligation,  except  ordinary 
notes  received  in  payment  of  premiums  for  policies  issued  on  the  cash 
basis,  taken  by  any  fire  insurance  corporation  doing  business  in  this 
state  or  by  any  agent  thereof,  for  which  the  consideration  in  whole  or 
in  part  shall  be  the  issuing  of  a  policy  of  insurance,  shall  have  written 
in  the  body  thereof  the  words  "given  in  payment  for  a  policy  of  in- 
surance, and  if  transferred  either  before  or  after  maturity  shall  re- 
main subject  to  all  defenses."  Such  notes  or  obligations  shall  be  sub- 
ject to  all  defenses  the  maker  thereof  may  or  could  have  against  the 
original  promisee  in  whosesoever  hands  the  same  may  be;  and  if  any 
such  corporation  or  agent  thereof  shall  take  any  such  note  or  obliga- 
tion not  so  written  such  corporation  shall  forfeit  its  license  to  do  busi- 
ness in  this  state. 

When  void. 

Section  1945.  Every  note  or  obligation  given  in  payment  of  any 
premium  for  any  policy  of  insurance  issued  by  any  fire  insurance  cor- 
poration shall,  if  before  the  expiration  of  such  policy  such  corporation 
shall  become  insolvent  or  bankrupt,  become  utterly  void  in  whosoever 
hands  the  same  may  be,  so  far  as  the  premium  for  which  the  same  was 
given  was  unearned  at  the  time  of  such  insolvency  or  bankruptcj . 

Action  to  collect  assessment. 

Section  1945b.  No  action  shall  be  brought  in  any  court  of  this  state 
by  the  receiver,  trustee  or  other  officer  or  person  exercising  the  func- 
tions of  a  receiver  to  recover  any  assessment  made  by  a  foreign  mutual 
fire,  life  or  accident  insurance  company,  for  any  money  due  any  such 
company  as  and  for  dues  or  fees  on  account  of  insurance  therein, 
whether  such  assessment  be  made  by  the  company  or  the  receiver, 
trustee  or  other  officer  or  person  unless  such  action  be  begun  within 
six  months  after  such  assessment  is  made  or  the  liability  to  pay  such 
dues  or  fees  accrued. 

Risks  domestic  companies  may  assume. 
Section  1945c.  Any  corporation  organized  under  the  laws  of  this 
state  for  the  insurance  of  property  against  loss  or  damage  by  fire  may 
also  insure  the  same  classes  of  property,  subject  to  the  limitations  pre- 
scribed by  the  law  under  which  it  was  organized  or  is  governed  as  to 
the  amount  of  any  single  risk,  against  loss  or  damage  by  lightning, 
hail,  windstorms,  tornadoes,  cyclones,  hurricanes,  earthquake,  bom- 
bardment, invasion,  insurrection,  riot,  civil  war,  military  or  usurped 
power,  leakage  of  sprinklers  or  sprinkler  systems,  installed  or  main- 
tained for  the  purpose  of  protection  against  fire  and  by  explosions, 
whether  fire  ensues  or  not,  including  insurance  upon  automobiles  and 
vehicles  and  the  accessories  and  other  property  transported  upon  and 


Ch.  89  91  1946—1 

used  in  connection  therewith  against  loss  by  collision  and  against  loss 
by  legal  liability  for  damage  to  property  resulting  from  the  mainten- 
ance and  use  of  such  automobiles  or  vehicles  and  against  loss  by 
burglary  or  theft  or  both  and  against  any  risk  mentioned  in  sub- 
sections 1,  2,  5  or  10  of  section  1897  which  said  company  may  assume 
under  its  license;  provided  the  same  shall  be  clearly  expressed  in  the 
policy,  but  nothing  herein  shall  be  construed  to  empower  such  com- 
panies to  insure  against  loss  or  damage  to  persons  or  property  result- 
ing from  explosions  of  steam  boilers. 

Classification  of  directors. 
Section   1945f.     Any   fire   insurance   company   organized   under   any 
special  law  of  this  state  may  classify  its  directors  so  that  a  proportion- 
ate number  of  them  shall  hold  for  one,  two  and  three  years  respectively. 

Liability  of  directors  of  mutual  companies. 

Section  1945h.  The  directors  of  every  mutual  fire  insurance  corpo- 
ration shall  be  personally  liable  for  all  dues  owing  and  assessments 
made  on  policies  written  upon  property  in  any  other  state,  territory  or 
foreign  country  in  which  the  corporation  has  not  been  duly  admitted  to  do 
business  and  wherein  such  policies  have  been  issued  in  violation  of  the 
law  of  such  state,  territory  or  foreign  country;  provided,  this  section 
shall  not  apply  to  church  mutual  insurance  companies. 

Assessment  by  foreign  company. 

Section  19451.  The  secretary  or  some  other  oflBcer  of  every  foreign 
mutual  fire  company  licensed  to  do  business  in  this  state  shall,  imme- 
diately after  making  an  assessment  upon  any  of  its  members  herein, 
notify  the  commissioner  of  insurance  thereof  and  accompany  such 
notice  with  a  statement  of  the  condition  of  the  company,  setting  forth 
therein  in  particular  the  facts  showing  the  necessity  for  each  assess- 
ment made.  No  such  company  shall  make  or  increase  any  such  assess- 
ment because  of  its  inability  to  collect  assessments  from  its  members 
in  states  or  territories  in  which  it  was  not  authorized  to  do  business 
and  wherein  its  policies  were  written  in  violation  of  the  laws  thereof; 
provided,  that  this  section  shall  not  apply  to  church  mutual  insurance 
companies. 

Section  1946.     IRepealed  in  1913'i. 


INSURANCE    RATE-MAKING 

Insurers  must  be  members  of  rating  bureau. 
Section  1946 — 1.  Every  company  or  other  insurer  licensed  to  effect 
insurance  against  the  risk  of  loss  or  damage  by  fire,  lightning,  wind- 
storm, or  sprinkler  leakage  in  this  state,  shall  be  a  member  of  a  rating 
bureau.  No  such  insurer  shall  be  a  member  of  more  than  one  bureau  for 
the  purpose  of  making  a  rate  on  any  class  of  risks  for  the  same  hazard. 


1946—5  92  Ch.  89 

Organization  of  rating  bureau. 
Section  1946 — 2.  A  rating  bureau,  for  the  purpose  of  complying  with 
the  requirements  of  section  1946—1,  may  be  organized  by  five  or  more 
insurers.  Such  bureau  shall  admit  to  membership,  any  licensed  insurer 
applying  for  membership  therein.  The  expenses  of  the  bureau,  in- 
curred in  connection  with  "Wisconsin  business,  shall  be  borne  by  the 
companies,  in  proportion  to  the  direct  premiums  received  during  the 
year  from  business  written  on  property  in  this  state,  less  return  pre- 
miums and  returns  or  dividends  to  policyholders  on  mutual  or  par- 
ticipating policies.  A  reasonable  annual  membership  fee  may  also  be 
charged.  Each  member  of  the  bureau  shall  be  entitled  to  one  vote. 
Each  class  of  companies  or  insurers,  members  of  such  bureau,  shall 
have  representation  on  its  managing  committee. 

Office  in  state. 
Section  1946 — 3.     Every  bureau  rating  risks  located   in  Wisconsin 
shall  maintain  an  office  in  this  state. 

License  of  rating  bureau. 
Section  1946 — 4.  Every  bureau  making  rates  on  risks  located  in  this 
state  shall  annually  procure  from  the  commissioner  of  insurance  a 
license  to  carry  on  such  business.  The  license  year  for  such  bureau 
shall  be  from  February  first  to  January  thirty-first  succeeding.  Each 
bureau  shall  pay  to  the  state,  through  the  commissioner  of  insurance, 
an  annual  license  fee  of  one  hundred  dollars,  such  fee  to  be  paid  at 
the  time  of  filing  application  for  license.  The  commissioner  of  insur- 
ance shall  prescribe  blanks  and  make  needed  regulations  governing 
the  licensing  of  bureaus.  The  license  of  any  bureau  may  be  revoked 
by  the  commissioner  of  insurance  for  failure  to  comply  with  the  re- 
quirements of  law  or  rulings  of  the  department  of  insurance.  Such 
revocation  shall  not  take  place  until  the  bureau  has  had  a  hearing 
before  the  commissioner  upon  at  least  ten  days'  notice. 

Regulation    of    bureaus;     filing    articles,    contracts,    schedules    and 
forms. 

Section  1946—5.  1.  Each  bureau  shall  file  with  the  commissioner 
of  insurance,  a  copy  of  its  articles  of  association,  and  its  by-laws.  It 
shall  also  file  with  the  said  commissioner,  copies  of  all  contracts  or 
agreements  entered  into  with  its  members  or  subscribers.  All  regula- 
tions or  rules  of  any  such  rating  bureau,  shall  be  filed  with  the  com- 
missioner of  insurance,  and  no  such  regulations  or  rules  shall  be  in 
force  before  such  filing,  nor,  in  any  case,  after  a  written  order  by  the 
commissioner  of  insurance,  disapproving  such  regulation  or  rules. 

2.  No  regulation  or  rule  shall  be  adopted  which  shall  limit  or  pro- 
hibit the  exercise,  by  any  company,  of  its  right  to  make  a  different 
rate,  as  provided  in  section  1946 — 9. 

3.  The  commissioner  of  insurance  may  address  inquiries  to  any  indi- 
vidual or  bureau,  which  is  engaged  in  making  rates,  upon  property  in 
this  state,  in  relation  to  its  organization,  maintenance  or  operation,  or 


Ch.  89  93  1946—9 

any  other  matter  connected  with  its  transactions.  He  may  also  re- 
quire a  survey  of  any  risk  or  group  of  risks  at  any  time,  and  also  re- 
quire the  filing  of  schedules,  written  reports  of  surveys  in  individual 
cases,  rates,  forms,  rules,  regulations  and  other  information;  and  it 
shall  be  the  duty  of  every  individual,  association  or  bureau  to  comply 
promptly  with  his  request. 

Examination  of  rating  bureaus. 

Sectiox  1946 — 6.  The  commissioner  of  insurance  shall  have  the  right 
to  examine  any  rating  bureau  making  rates  on  property  located  in  this 
state  as  often  as  he  deems  it  expedient  to  do  so,  and  shall  do  so  not 
less  than  once  in  every  three  years.  The  expenses  of  examining  a  bu- 
reau shall  be  paid  by  the  bureau.  A  report  covering  each  examination 
shall  be  filed  in  the  department  of  insurance.  The  commissioner  of  in- 
surance may  waive  such  examination  upon  a  report  of  an  examination 
made  by  another  insurance  department  or  supervising  officer  within  a 
period  of  three  years  being  filed  with  him. 

Surveys  of  risks. 
Section  1946^7.  Every  rating  bureau  engaged  in  making  rates  on 
property  located  in  this  state  shall  inspect  every  risk  specifically  rated 
by  it  upon  schedule,  and  shall  make  a  written  survey  of  such  risk 
which  shall  be  filed  as  a  permanent  record  in  the  Wisconsin  office  of 
such  bureau.  Rates  for  insurance  upon  all  property  rated  upon  a  flat 
rate  basis  shall  also  be  filed  in  such  office.  Such  survey  shall  show  the 
base  rate  and  also  the  charges  and  credits.  A  copy  of  such  survey 
shall  be  furnished  to  the  owner  upon  request.  All  such  rates  shall  also 
be  filed  with  the  stamping  office  or  offices  to  which  reports  of  writings 
are  made.  Classifications  of  risks  and  rating  schedules  shall  be  uniform 
for  all  Insurers  and  rating  bureaus  operating  in  this  state. 

Rates  to  be  reasonable. 

Section  1946—8.  No  company  or  other  insurer  against  the  risk  of 
fire,  lightning,  windstorm,  or  sprinkler  leakage,  and  no  rating  bureau 
shall  fix  or  charge  any  rate  for  insurance  upon  property  located  in  this 
state  which  is  unreasonable  or  which  discriminates  unfairly  between 
risks  in  the  application  of  like  charges  and  credits,  or  which  discrim- 
inates unfairly  between  risks  of  essentially  the  same  hazard  and  having 
essentially  the  same  degree  of  protection. 

Deviation  from  schedule  rates. 
Section  1946 — 9.  Any  company  or  other  insurer  may  make  a  rate 
different  from  the  bureau  rate  upon  any  class  of  risks.  Every  com- 
pany or  other  insurer  which  determines  to  make  a  rate  different  from 
that  made  by  the  bureau,  shall  at  least  fifteen  days  in  advance  of  the 
date  on  which  such  rate  is  to  become  effective,  file  with  the  Wisconsin 
office  of  the  bureau  of  which  it  is  a  member,  the  stamping  office  to 
which  it  reports  its  writings,  and  the  commissioner  of  insurance,  a 
schedule  showing  such  variation  and  the  date  upon  which  the  varied 


1946—11  94  Ch.  89 

rate  is  to  be  effective.  Every  such  variation  shall  be  uniform  for  all 
risks  in  the  class  for  which  the  variation  is  made.  If  any  insurer  makes 
a  lower  rate  on  any  class  of  property  than  that  fixed  by  the  rating  bu- 
reau of  which  it  is  a  member  or  subscriber,  such  rate  shall  not  be  in- 
creased by  such  insurer  until  one  year  has  elapsed  except  when  such 
increase  is  approved  by  the  commissioner  of  insurance. 

Discrimination,  how  removable. 
Section  1946 — 10.  No  discrimination  shall  be  removed  by  increasing 
the  rate  at  which  any  risk  or  class  of  risks  is  written  after  this  act 
takes  effect,  unless  it  shall  be  made  to  appear  to  the  commissioner  of 
insurance  that  such  rate  was  made  by  unintentional  error  or  that  an 
increase  is  justifiable  and  a  certificate  to  that  effect  is  made  by  the 
commissioner  of  insurance  and  filed  in  his  office. 

Commissioner  to  establish  rates;  complaints;  reviews. 
Section  1946 — 11.  The  commissioner  of  insurance  shall  have  power, 
upon  the  written  complaint  of  any  person  having  a  direct  financial  in- 
terest, or  upon  his  own  motion,  to  review  any  rate  fixed  by  a  bureau 
or  insurer  for  insurance  upon  any  risk  or  classification  in  this  state 
for  the  purpose  of  determining  whether  the  same  is  unreasonable  or 
discriminatory.  If  he  shall  find  that  the  rate  is  discriminatory,  he 
shall  order  the  discrimination  removed  and  a  nondiscriminatory  rate 
substituted.  If  he  shall  find  that  the  rate  is  unreasonable,  he  shall 
establish  a  reasonable  rate  and  by  order  require  any  bureau  making  a 
rate  upon  such  risk  or  class  of  risks  to  fix  a  rate  which  shall  not  be 
higher  than  the  rate  so  established  by  him.  Any  review  of  such  rate 
or  rates  before  the  commissioner  shall  be  upon  due  notice  to  the  par- 
ties interested,  and  his  findings  or  order  shall  be  made  after  a  hearing 
before  him,  and  in  all  cases  shall  be  subject  to  summary  review  by 
the  circuit  court  of  Dane  county.  During  such  court  review  the  oper- 
ation of  the  commissioner's  order  shall  be  suspended,  but  in  the  event 
of  final  determination  against  any  insurer,  any  overcharge  made  during 
the  pendency  of  such  proceedings  shall  be  refunded  to  the  person  or 
persons  entitled  thereto.  All  written  complaints  under  this  section 
shall  be  verified,  and  may  be  upon  information  and  belief  of  the  person 
or  persons  complaining.  The  complaint  shall  show  in  substantial 
detail  the  grounds  upon  which  it  is  based,  and  shall  be  sufficient  to 
enable  the  commissioner  to  determine  whether  there  is  probable  cause 
therefor.  A  copy  of  such  complaint  shall  be  served  upon  the  company, 
bureau,  or  person  against  whom  the  complaint  is  directed,  and  each 
of  such  parties  in  interest  shall  be  entitled  to  at  least  ten  days'  notice 
of  any  hearing  thereon.  An  agent  who  has  placed  the  business  shall 
be  deemed  to  have  a  direct  financial  interest  under  this  section.  If  the 
Investigation  is  upon  the  commissioner's  own  motion  and  results  in  a 
finding  materially  affecting  any  interest  or  practice"  of  any  bureau, 
insurance  carrier,  or  agent  or  representative  of  either,  a  copy  of  such 
finding  shall  be  served  upon  the  person  or  organization  affected,  and 
he  or  it  shall  be  entitled  to  a  hearing  thereon  before  the  commissioner. 


Ch.  89  95  1946—13 

if  such  hearing  is  requested  within  ten  days  from  the  date  of  service. 
No  order  or  finding  of  the  commissioner,  made  as  a  result  of  an  investi- 
gation upon  his  motion,  shall  be  effective  until  the  expiration  of  the 
time  within  which  a  request  for  a  hearing  may  be  made.  Any  finding  or 
order  of  the  commissioner  in  an  investigation  upon  his  own  motion 
shall  be  subject  to  court  review  the  same  as  if  made  after  hearing  upon 
complaint  as  herein  provided. 

Report  of  bureau  memberships. 
Section  1946 — 12.  Every  company  or  other  insurer  shall,  in  its  an- 
nual application  for  license,  specify  each  rating  bureau,  making  rates 
upon  property  located  in  this  state,  of  which  it  is  a  member  or  to 
which  it  is  a  subscriber,  and  during  the  year  shall  give  written  notice 
to  the  commissioner  of  insurance  as  to  any  other  rating  bureau  of 
which  it  may  become  a  member  or  to  which  it  may  become  a  sub- 
scriber or  from  which  it  has  withdrawn. 

Stamping  office. 

Section  1946 — 13.  All  companies  or  other  insurers  subject  to  this 
act  shall  maintain  in  this  state  a  "stamping  office,"  which  shall  be 
under  the  management  of  a  "chief  examiner."  The  expense  of  such 
office  shall  be  equitably  apportioned  between  the  companies  and  in- 
surers reporting  thereto  on  the  basis  of  direct  receipts  from  business 
written  in  this  state  less  return  premiums  and  returns  or  dividends  to 
policyholders.  All  of  the  writings  of  such  companies  and  insurers  upon 
property  located  in  this  state  shall  be  reported  to  said  stamping  office 
when  the  insurance  is  placed.  The  stamping  office  shall  be  subject  to 
visitation  and  examination  by  the  commissioner  of  insurance.  The 
"chief  examiner"  of  such  stamping  off.ce  shall  furnish  to  the  commis- 
sioner of  insurance,  upon  request,  information  regarding  any  of  the 
work  or  activities  of  such  office.  No  employe  of  such  office  shall  dis- 
close any  fact  as  to  any  business  reported  thereto  except  in  compliance 
with  law. 

Any  violation  of  the  provisions  of  this  act  shown  by  reports  of 
writings  made  to  the  stamping  office  shall  be  brought  to  the  attention 
of  the  agent  and  company  writing  such  business,  with  a  direction  that 
the  violation  be  corrected  within  a  period  of  not  exceeding  fifteen 
days  and  satisfactory  proof  of  the  correction  given  to  the  said  office. 
Any  violation  not  corrected  and  reported  to  the  stamping  office  within 
the  time  required  by  it,  shall  be  reported  at  once  to  the  commissioner 
of  insurance  by  the  "chief  examiner"  of  such  office.  Such  office  shall 
keep  no  record  of  the  name  of  the  assured,  the  property  covered,  or 
the  date  of  commencement  or  expiration  of  the  policy  except  in  case 
of  a  report  showing  a  violation  of  this  act.  When  such  violation  is 
finally  disposed  of  by  correction  or  by  order  of  the  commissioner  of 
insurance,  such  record  shall  be  destroyed.  In  the  management  of  such 
office  each  company  or  other  insurer  shall  be  entitled  to  one  vote. 


1946—16  96  Ch.  89 

Mutual  companies,  Lloyds  and  interinsurers,  or  any  of  them,  may 
organize  and  operate  a  separate  stamping  office,  subject  to  all  the 
provisions  of  this  section. 

Temporary  rates. 
Section  1946 — 14.  Until  a  new  bureau  rate  is  made,  the  rates  or 
estimates  for  rates  published  and  in  force  on  the  taking  effect  of  this 
section,  for  companies  which  are  members  of  a  bureau,  shall'  be  the 
bureau  rates  for  such  bureau;  provided  that  the  rate  which  is  being 
charged  by  any  company  upon  any  risk  on  the  taking  effect  of  this 
section  shall  be  the  bureau  rate  as  to  such  risk  for  such  company  and 
for  any  other  company  electing  to  accept  the  same  until  a  new  rate  is 
made;  provided  also  that  prior  to  a  resurvey  by  the  bureau  of  any 
risk  specifically  rated,  no  company  shall  charge  any  other  rate  upon 
any  risk  than  that  charged  on  a  policy  in  force  upon  such  risk  on  the 
taking  effect  of  this  section  except  as  specifically  authorized  by  this 
section;  and  provided,  also,  that  where  a  flat  rate  has  been  made  upon 
a  risk  which  is  lower  than  the  rate  being  charged  in  any  policy  in 
force  on  the  taking  eilect  of  this  section  t'ae  flat  rate  shall  in  such 
case  be  the  bureau  rate.  Any  rate  referred  to  in  this  section  may  be 
changed  by  an  order  of  the  commissioner  of  insurance. 

Riders  for  extra  hazards  to  be  filed. 
Section  1946 — 15.  Any  rider  attached  to  a  policy  of  any  insurer  sub- 
ject to  this  act,  which  permits  an  increase  of  the  hazard  not  contem- 
plated in  the  bureau  rate  in  effect  for  such  risk,  shall  be  charged  for  at 
a  rate  fixed  by  the  rating  bureau.  All  riders  affecting  hazards  for 
which  no  charge  is  to  be  made  shall,  before  being  used  in  this  state, 
be  filed  with  and  approved  by  the  commissioner  of  insurance. 

Classification  and  filing  of  risks;     information  not  public. 

Section  1946 — 16.  1.  The  commissioner  of  insurance  shall  establish 
and  file  in  his  office,  a  classification  of  risks  for  fire  insurance.  On  or 
before  the  first  day  of  January,  1919,  every  such  rating  bureau,  shall 
classify  every  risk  rated  by  it  upon  schedule,  according  to  such  classi- 
fication, as  fixed  and  ordered  by  the  commissioner  of  insurance.  There- 
after, the  classification  number  shall  be  written  or  stamped  upon  the 
survey  of  every  risk  rated  by  such  bureau.  The  bureau,  when  quoting 
a  rate  upon  any  risk,  shall  give  the  classification  number  for  that 
risk.  Every  fire  insurance  company,  insuring  any  risk,  shall  enter  the 
proper  classification  number  upon  each  daily  report  or  other  report  or 
document  relating  to  the  insurance. 

2.  Every  fire  insurance  company  or  other  insurer,  shall  compile  and 
file  with  the  commissioner  of  insurance,  annually,  under  regulations 
prescribed  by  him,  a  statement  of  the  net  amount  of  insurance  written, 
the  net  premiums  received  and  the  net  losses  paid,  for  each  class  in 
this  state.     All  such  data  shall  be  preserved  as  permanent  records  in 


Ch.  89  97  1946h 

the  office  of  the  commissioner  of  insurance.     The  details  of  the  state- 
ment of  individual  companies  shall  not  be  made  public. 

Penalty  for  violation. 
Section  1946 — 17.  Any  company  or  other  insurer,  rating  bureau, 
stamping  office,  agent,  or  other  representative  of  any  company  or  other 
insurer,  stamping  office,  or  rating  bureau  failing  to  comply  with  or 
guilty  of  a  violation  of  any  of  the  'provisions  of  section  1943b  or  sec- 
tions 1946 — 1  to  1946 — 18  or  of  any  order  or  ruling  of  the  commis- 
sioner of  insurance  made  hereunder,  shall  be  punished  by  a  fine  of  not 
less  than  fifty  nor  more  than  five  hundred  dollars.  In  addition  thereto, 
the  license  of  any  fire  insurance  company  or  other  insurer,  bureau, 
agent,  or  broker,  guilty  of  such  violation  may  be  revoked  or  suspended 
by  the  commissioner  of  insurance. 

Towns  mutuals  excepted. 
Section  1946 — 18.     The  provisions  of  this  act  shall  not  apply  to  town 
mutual  companies  nor  to  domestic  mutual  cyclone  insurance  companies 
operating  on  the  assessment  plan. 


PROVISIONS    APPLICABLE    TO    DIFFERENT    CLASSES    OF 
INSURANCE  COMPANIES 

Representation  as  to  assets. 
Section  1946a.  It  shall  not  be  lawful  for  any  company,  corporation, 
association,  individual  or  individuals,  now  transacting  or  which  may 
transact  the  business  of  insurance  within  this  state,  to  state  or  repre- 
sent by  advertisement  in  any  form  any  funds  as  assets  to  be  in  its, 
his  or  their  possession  and  not  so  actually  possessed  and  available  for 
the  payment  of  losses  and  held  for  the  protection  of  the  holders  of 
policies  of  insurance;  and  such  statement  shall  also  show  the  amount 
available  and  held  in  the  United  States. 

Section  Idlfia  is  referred  to  in  19Jf6e. 

Same  as  to  capital  and  surplus. 
Section  1946b.  Every  advertisement  or  public  announcement  and 
every  sign,  cii-cular  or  card  hereafter  made  or  issued  by  any  company, 
corporation,  association,  individual  or  individuals,  or  any  officer,  agent, 
manager  or  legal  representative  thereof,  which  is  or  may  be  authorized 
to  transact  the  business  of  insurance  within  this  state  which  shall  pur- 
port to  make  known  the  financial  standing  of  any  such  company,  cor- 
poration, association,  individual  or  individuals  shall  exhibit  the  capital 
actually  paid  in  cash  and  the  amount  of  its,  his  or  their  net  surplus 
of  assets  over  all  liabilities  actually  available  for  the  payment  of  losses 
and  held  for  the  protection  of  holders  of  their  policies  of  insurance, 
including  in  such  liabilities  capital  actually  paid  in  and  the  fund  re- 
served for  reinsurance  of  outstanding  risks,  and  shall  correspond  with 


J  946c  98  Ch.  89 

the  verified  statement  made  by  the  company,  corporation,  association, 
individual  or  individuals  making  or  issuing  the  same  to  the  insurance 
department  of  this  state  next  preceding  the  making  or  issuing  of  the 
same;  but  in  policies  or  renewals  thereof  there  may  be  stated  a  single 
item  showing  the  amount  of  authorized  capital. 
Section  liUGb  is  referred  to  in  19lfie. 

Misrepresentation  as  to  risks;  'evidence;  penalty. 
Section  1946c.  It  shall  be  unlawful  for  any  company,  association  or 
corporation  transacting  the  business  of  insui-ance  in  this  state  to  pub- 
lish or  cause  to  be  published,  or  permit  to  be  published  by  any  of  its 
agents  or  with  the  knowledge  or  consent  of  any  of  them,  any  state- 
ment which  shall  represent  said  company,  association  or  corporation 
as  writing  risks  different  in  nature  or  class  from  those  actually  writ- 
ten by  it,  or  shall  represent  said  company,  association  or  corporation 
as  confining  its  business  to  a  particular  class  of  risks  when  it  is  in 
reality  writing  risks  of  another  class.  The  distribution  of  any  cards 
or  other  documents  by  any  such  agent  containing  such  deceptive  rep- 
resentations, or  the  existence  of  any  sign  exposed  to  public  view  con- 
taining them  and  belonging  to  any  such  company,  association  or  cor- 
poration or  any  agent  thereof,  or  the  existence  of  any  advertisement 
or  card  or  statement  containing  any  such  deceptive  representations 
in  any  newspaper  published  in  any  town,  callage  or  city  in  which  said 
company,  association  or  corporation  has  an  agent  transacting  business 
or  soliciting  insurance  shall  be  prima  facie  evidence  of  the  violation  of 
this  section  by  said  company,  association  or  corporation.  In  addition 
to  the  penaUy  provided  in  section  1946,  which  is  hereby  made  applicable 
to  this  section,  the  commissioner  of  insurance  shall  revoke  the  license 
of  any  company,  association  or  corporation  which  shall  be  convicted 
of  violating  this  section,  and  the  licenses  of  all  its  agents  for  the  trans- 
action of  the  business  of  insurance  within  this  state,  immediately  upon 
the  filing  of  a  certified  copy  of  the  record  of  such  conviction  with  said 
commissioner.  Whenever  there  shall  be  filed  with  him  an  affidavit  con- 
taining a  statement  of  facts  constituting  prima  facie  evidence  of  the 
violation  of  this  section  by  any  such  company,  association  or  corpora- 
tion the  commissioner  shall  immediately  notify  it  of  such  filing  and 
require  such  company,  association  or  corporation  to  show  cause  before 
him,  within  thirty  days  from  such  notification  why  its  license  should 
not  be  revoked;  and  if  such  company,  association  or  corporation  shall 
fail  within  the  time  specified  to  establish  to  the  satisfaction  of  said 
commissioner  that  it  has  not  vio'ated  this  section  in  the  manner  alleged 
in  such  affidavit  he  shall  immediately  revoke  the  license  of  said  com- 
pany, association  or  corporation  and  the  license  of  all  its  agents  for 
the  transaction  of  the  business  of  insurance  within  this  state.  No  li- 
cense to  transact  such  business  within  this  state  shall  be  granted  to 
any  company,  association  or  corporation  or  to  any  agent  thereof  for 
said  company,  association  or  corporation  for  one  year  from  the  date 
when  its  license  was  so  revoked. 

Hecti-on   lOHir  i.s  referred   to  in  l!>i<lr. 


Ch.  89  99  1946d 

Cancellation  of  policy. 

Section  1946d.  Any  company,  association  or  corporation  transacting 
the  business  of  insuring  property  against  loss  or  damage  from  any 
cause  except  steam  boiler,  fly  wheel  or  elevator  insurance  shall,  except 
as  is  otherwise  provided  by  any  provision  applicable  to  any  class  of  in- 
surance companies,  cancel  any  policy  at  any  time,  by  request  of  the 
party  insured  or  his  assignee,  and  return  to  said  party  the  amount  of 
premium  paid,  less  the  earned  premium  for  the  expired  portion  of  the 
full  term  for  which  the  policy  has  been  issued  as  specified  in  the  fol- 
lowing tables: 


1946d 


100 


Ch.  89 


TABLE  A 

PERCENTAGES  OF  THE   ANNUAL   PREMIUMS   TO  BE   CHARGED   OR  RETAINED 
FOR   PERIODS    LESS    THAN    ONE   YEAR 


Per 

: 

Per 

Per 

Per 

j 

Per 

Per 

Days 

Cent 

Days 

i 

Cent 

Days 

Cent 

Days 

Cent 

Days 

Cent 

Days 

Cent 

1 

1 

2.10 

61 

31.17 

121 

i    50.33 

181 

70.17 

241 

80.17 

301 

90.17 

2 

3.86 

62 

32.10 

122 

50.67 

182 

70.34 

242 

80.34 

302 

90.34 

S 

B.25 

63 

32.80 

123 

1     51.00 

183 

70. 5U 

243 

80.. 50 

303 

90.50 

4 

6.26 

64 

33.27 

124 

51.33 

184 

70.67 

244 

80.67 

304 

90.67 

5 

7.00 

65 

33.50 

125 

51.67 

185 

70.84 

245 

80.84 

305 

90.84 

6 

8.00 

66 

34.32 

126 

52.00 

186 

71.00 

246 

81.00 

306 

91.00 

7 

8.80 

67 

34.97 

)     127 

52.33 

187 

71.17 

247 

81.17 

307 

91.17 

8 

9.40 

!      68 

35.46 

128 

52.67 

188 

71.34 

248 

81.34 

308 

91.34 

9 

9.80 

1      69 

35.79 

129 

53.00 

189 

71.50 

249 

81.50 

309 

91.50 

10 

10.00 

1      70 

35.95 

130 

53.33 

190 

71.67 

250 

81.67 

310 

91.67 

11 

11.33 

71 

36.30 

131 

53.67 

191 

71.84 

251 

81.84 

311 

91.84 

12 

12.40 

72 

36.58 

132 

54.00 

192 

72.00 

252 

82.00 

312 

92.00 

13 

13.20 

73 

36.79 

133 

54.33 

193 

72.17 

253 

82.17 

313 

92.17 

14 

13.73 

74 

36.93 

134 

54.67 

194  1 

72.34 

254 

82.34 

314 

92.34 

15 

14.00 

75 

37.00 

135 

55.00 

195  1 

72.50 

255 

82.50 

315 

92.50 

16 

15.00 

76 

37.50 

136 

55.33 

196 

72.67 

256 

82.67 

■     316 

92.67 

17 

15.80 

77 

37.90 

137 

55.67 

197 

72.84 

257 

82.84 

317 

92.84 

18 

16.40 

78 

38.20 

138 

."iO.OO 

198 

73.00 

258 

83.00 

318 

93.00 

19 

16.80 

79 

38.40 

139 

56.33 

199 

73.17 

259 

83.17 

319 

93.17 

20 

17.00 

80 

38.50 

140 

56.67 

200 

73.34 

260 

83.34 

320 

93.34 

21 

17.70 

81 

38.85 

141 

57.00 

201 

73.50 

261 

83.50 

321 

93.50 

22 

18.26 

82 

39.13 

142 

57.33 

202 

73.67 

262 

83.67 

322 

93.67 

23 

18.68 

83 

39.34 

143 

57.67 

203 

73.84 

1     263 

83.84 

323 

93.84 

24 

18.96 

84 

39.48 

144 

58.00 

204  • 

74.00 

264 

84.00 

324 

94.00 

25 

19.10 

85 

39.55 

145 

58.33 

205 

74.17 

265 

84.17 

325 

94.17 

26 

19.40 

86 

39.70 

146 

58.67 

206  1 

74.34 

1     266 

84.34 

326 

94.34 

27 

19.64 

87 

39.82  1 

147 

59.00 

207  1 

74.50 

267 

84.50 

327 

94.50 

28 

19.82 

88 

39.91  i 

148 

59.33 

208 

74.67 

268 

84.67 

328 

94.67 

29 

19.94 

89 

39.97  1 

149 

59.67 

209 

74.84 

269 

84.&4 

329 

94.84 

30 

20.00 

90 

40.00 

150 

60.00 

210 

75.00 

270 

85.00 

330 

95.00 

31 

21.17 

91 

40.33 

151 

60.33 

211 

75.17 

271 

85.17 

331 

95.17 

32 

22.10 

92 

40.67 

152 

60.67 

212 

75.34 

272 

85.34 

332 

95.34 

33 

22.80 

93 

41.00 

153 

61.00 

213 

75.  .50 

273 

85.50 

333 

95.50 

34 

23.27 

94 

41.33 

154 

61.33 

214 

75.67 

274 

85.67 

334 

95.67 

35 

23.50 

95 

41.67 

155 

61.67 

215 

75.84 

275 

85.84 

335 

95.84 

36 

24.32 

96 

42.00 

156 

62.00 

210 

76.00 

276 

86.00 

336 

96.00 

37 

24.97 

97 

42.33  1 

157 

62.33 

217 

76.17 

277 

86.17 

337 

96.17 

38 

25.46 

98 

42.67 

158 

62.67 

218 

76.34  , 

278 

86.34 

338 

96.34 

39 

25.79 

99 

43.00 

159 

63.00 

219 

76.50 

279 

86.50 

339 

96.50 

40 

25.95 

100 

43.33 

160 

63.33 

220 

76.67 

280 

86.67 

340 

96.67 

41 

26.30 

101 

43.67 

161 

63.67 

221 

76.84 

281 

86.84 

341 

96.84 

42 

26.68 

102 

44.00 

162 

64.00 

222 

77.00 

282 

87.00 

342 

97.00 

43 

26.79 

103 

44.33 

163 

64.33 

223 

77.17 

283 

87.17 

343 

97.17 

44 

26.93 

104 

44.67  ! 

164 

64.67 

224  1 

77.34 

284 

87.34 

344 

97.34 

45 

27.00 

105 

45.00  ! 

165 

65.00 

225 

77.50 

285  1 

87.50 

345 

97.50 

46 

27.50 

106 

45.33 

166 

65.33 

226 

77.67 

286 

87.67 

346 

97.67 

47 

27.90  ' 

107 

45.67 

167 

65.67 

227 

77.84 

287 

87.84 

347 

97.84 

48 

28.20  j 

108 

46.00 

168 

66.00 

228 

78.00 

288 

88.00 

318 

98.00 

49 

28.40  ! 

109 

46.33 

169 

66.33 

229 

78.17 

289 

88.17 

349 

98.17 

50 

28.50  I 

110 

46.67 

170 

66.67 

230 

78.34 

290 

88.34 

350 

98.34 

51 

28.85 

111 

47.00  1 

171 

67.00 

231  ' 

78.50 

291 

88.50 

351 

98.50 

52 

29.13 

112 

47.33 

172 

67.33 

232  ' 

78.67 

292 

88.67 

352 

98.67 

53 

29.34 

118 

47.67 

173 

67.67 

233 

78.84 

293 

88.84 

353 

98.84 

54 

29.48  '■ 

114 

48.00 

174 

68.00 

234 

79.00 

294 

89.00 

354 

99.00 

55 

29.55  i 

115 

48.33 

175 

68.33 

235 

79.17 

295 

89.17 

355 

99.17 

56 

29.70 

116 

48.67 

176 

68.67 

236 

79.34 

296 

89.34  i 

356 

99.34 

57 

29.82 

117 

49.00 

177 

69.00 

237 

79.50 

297  1 

89.50 

357 

99.50 

58 

29.91 

118 

49.33 

178 

09.33 

238 

79.67 

298  i 

89.67  ; 

358 

99.67 

59 

29.97 

119 

49.67 

179 

69.67 

239 

79.84 

299 

89.84  ; 

359 

99.84 

60 

30.00 

120 

60.00  j 

180 

70.00 

240 

1 

80.00 

300  1 

90.00 

360  ' 

lOO.Of 

Ch.  89 


101 


1946d 


TABLE  B 

PlfRCKNTA&ES    OF    PREMIUMS    TO    BE    CHARGED    OR    RETAINED    AS  EARNED 
PREMIUMS  ON  POLICIES  WRITTEN  FOR  PERIODS  MORE  THAN  ONE  YEAR. 


Time 

2-year 

3-year 

4-year 

5-year 

Months 

Policy 

Policy 

Policy 

Policy 

1 - 

11% 

8% 

6% 

5% 

2.— - 

17 

12 

9 

8 

3 

23 

16 

12 

10 

4 

29 

20 

15 

13 

5 

34 

24 

18 

15 

6 

40 

28 

22 

18 

7 — 

43 

30 

23 

19 

8 — 

46 

32 

25 

20 

9 1 

49 

34 

26 

21 

10 - 

51 

36 

28 

23 

11 — - 

54 

38 

29 

24 

12- 

57 

40 

31 

25 

13- - 

61 

43 

33 

27 

14 

64 

45 

^ 

28 

15      .            

68 

48 

37 

30 

16— 

71 

50 

38 

31 

17 

75 

53 

40 

33 

18 

79 

55 

42 

34 

19 

82 

58 

44 

36 

20    - - —     - 

86 

60 

46 

38 

21— 

89 

63 

48 

39 

22 

93 

65 

50 

41 

23 - 

96 

68 

52 

42 

100 

70 

54 

44 

25 

73 

56 

45 

26 

75 

58 

47 

27 

78 

60 

48 

28 

SO 

62 

50 

83 

63 

52 

30— - — 

-_- 

85 

65 

53 

31    

S8 

67 

55 

32      

go 

69 

55 

33 

93 

71 

58 

34 

95 

73 

59 

35— 

98 

75 

61 

— 

100 

77 

63 

37 - 

79 

64 

38 

81 

66 

"  " 

83 

67 

40 

85 

69 

41 

_.. 

87 

70 

42 - .. 

— 

— 

88 

72 

43 

90 
92 

73 

75 

44 

— 

— , 

45 

94 

77 

46— .... 

96 

78 

47 

98 

80 

48 - 

.-. 

— 

100 

81 

49 

83 

50. — - - 





84 

51 

86 

52 





88 

53 

89 

54 - - 

— 

91 

55                   .- —     

— 

— 

92 

56 -- - -. 

94 

57    ..              .               - 

95 

58 

97 

59 

98 

lOO 

1946f  102  Ch.  89 

PRO  RATA  POLICIES  WRITTEN  FOR  MORE  THAN  ONE  YEAR. 

On  policies  written  for  more  than  one  year  at  pro  rata  of  the  annual 
rate  and  upon  which  the  elapsed  time  is  less  than  one  year,  short  rates 
of  the  full  annual  premiums  must  be  charged  as  provided  in  the  short 
rate  table  for  other  than  term  risks.  Policies  written  for  more  than 
one  year  at  pro  rata  of  the  annual  rate  and  upon  which  the  elapsed 
time  is  one  year  or  more  than  one  year  must  be  cancelled  pro  rata. 
Penalties. 

Sectiox  1946e.  Any  violation  of  any  provision  of  sections  1946a, 
1946b  or  1946c  shall,  for  the  first  offense,  subject  the  company,  corpora- 
tion, association  or  individual  so  violating  to  a  penalty  of  five  hundred 
dollars,  to  be  sued  for  and  recovered  in  the  name  of  the  state,  with 
costs  and  expenses  of  such  prosecution,  by  the  district  attorney  of  any 
county  in  which  the  company,  corporation,  association,  individual  or 
individuals  shall  be  located  or  may  transact  business  or  in  any  county 
where  such  offense  may  be  committed;  and  such  penalty,  when  recov- 
ered, shall  be  paid  into  the  treasury  of  such  county  for  the  benefit  of 
the  school  fund.  Every  subsequent  violation  shall  subject  the  company, 
corporation,  association,  individual  or  individuals  guilty  of  such  viola- 
tion to  a  penalty  of  not  less  than  one  thousand  dollars,  which  shall  be 
sued  for,  recovered  and  disposed  of  in  like  manner  as  for  the  first 
offense. 

False  use  of  name  of  insurance  company. 
Section  1946em.  No  insurance  company,  or  department,  or  general 
agency  of  an  insurance  company,  doing  business  in  this  state,  or  its 
officers  or  agents,  shall  issue  any  false  or  misleading  advertisements  or 
representations  tending  to  conceal  or  misrepresent  the  true  identity  of 
the  insurer  or  insurance  company  issuing  any  policy  in  or  upon  any 
property  or  risk  in  this  state. 

2.  No  insurance  company  or  department  or  general  agency  of  an  in- 
surance company,  doing  business  in  this  state,  shall  issue  any  contract, 
advertisement  or  representations  of  any  character  giving  the  appear- 
ance of  a  separate  or  independent  insuring  organization  upon  the  part 
of  any  department  or  general  agency,  and  the  type  of  letter  used  in 
any  contract,  advertisement  or  representation  shall  set  forth  the  name 
of  the  company  or  organization  assuming  the  risk  more  conspicuously 
than  that  of  any  department  or  general  agency.  Nothing  herein  con- 
tained shall  be  construed  to  prevent  any  representative  of  an  insurance 
company  from  advertising  his  own  individual  business  without  specific 
mention  of  the  name  of  the  company  or  companies  which  he  may  rep- 
resent. 

3.  Any  violation  of  this  section  shall  be  punished  by  a  fine  not  ex- 
ceeding five  hundred  dollars. 

Life  insurance  policies  and  circulars;  penalty  for  misrepresentations. 
Section  1946f.     1.  No   life    insurance   corporation   doing  business   in 
this  state,  and  no  officei",  director,  or  agent  thereof,  shall  issue  or  circu- 
late, or  cause  or  permit  to  be  issued  or  circulated,  any  estimate,  illua- 


Ch.  89  103  1946h 

tratioji,  circular  or  statement  of  any  sort  misrepresenting  the  terms 
of  any  policy  issued  by  it,  or  advantages  promised  thereby,  or  the  divi- 
dends or  share  of  surplus  to  be  received  thereon,  or  shall  use  any  title 
of  any  policy  or  class  of  policies,  misrepresenting  the  true  nature 
thereof,  and  no  life  insurance  company,  its  officers,  directors  or  agents, 
shall  issue  or  circulate  or  cause  or  permit  to  be  issued  or  circulated,  any 
written  circular  or  statement  of  any  sort,  wilfully  misrepresenting  any 
other  company,  the  nature  or  terms  of  its  policy  or  policies,  its  premium 
charge  or  dividends  allowed  or  returned  by  such  other  company. 

2.  No  figures  used  in  any  statement  or  illustration  of  future  dividends 
or  of  future  net  cost  shall  be  issued  or  used  by  any  company  or  agent 
or  other  representative  of  any  company  (or  other  insurer)  unless  the 
same  shall  be  a  mathematical  calculation  based  upon  assumptions  of 
the  policy  and  dividend  scale  in  actual  use,  nor  unless  each  edition 
thereof  shall  be  numbered  serially  and  a  copy  thereof  has  been  filed 
with  the  commissioner  of  insurance. 

3.  No  life  or  health  and  accident  insurance  company,  association  or 
fraternal  society,  or  any  officer,  director,  agent  or  deputy  thereof,  shall 
make  any  misrepresentations,  oral,  written  or  otherwise,  to  any  person 
for  the  purpose  of  inducing  or  tending  to  induce  such  person  to  take 
out  a  policy  of  insurance,  or  for  the  purpose  of  inducing  or  tending  to 
induce  a  policyholder  in  any  other  company  or  society  to  lapse,  forfeit 
or  surrender  his  insurance  therein. 

4.  Any  officer,  director  or  agent  or  deputy  aforesaid,  found  guilty  of 
violating  any  of  the  provisions  of  this  section,  shall  be  punished  by  a 
fine  of  not  less  than  twenty-five  dollars  nor  more  than  three  hundred 
dollars,  or  by  imprisonment  in  the  county  jail  for  a  term  not  exceeding 
six  months. 


THE   STATE    FIRE    MARSHAL 

Assistant;    deputies;    duties. 

Section  1946h.  The  commissioner  of  insurance  shall  be  ex  officio 
state  fire  marshal.  He  is  hereby  empowered  and  required  to  appoint 
one  chief  assistant  fire  marshal  and  such  deputy  fire  marshals,  clerical 
and  stenographic  assistants  as  are  needed  for  the  carrying  out  of  the 
duties  of  the  office.  The  deputy  commissioner  of  insurance  may  be  ap- 
pointed chief  assistant  fire  marshal  and  his  salary  apportioned  by  the 
commissioner  of  insurance  between  the  appropriation  to  the  department 
of  insurance  and  the  appropriation  to  the  state  fire  marshal.  The 
duties  of  said  chief  assistant  and  deputies  shall  be  to  assist  the  state 
fire  marshal.  The  state  fire  marshal  shall  have  power  to  retain  and 
assign  to  their  duties  any  or  all  of  the  officers,  subordinates  and  clerks 
of  the  state  fire  marshal's  department.  In  the  event  of  a  vacancy  in 
the  office  of  the  state  fire  marshal,  or  during  the  absence  or  disability 
of  that  officer,  the  chief  assistant  shall  perform  the  duties  of  the  office. 

Referred  to  in  20.55  (I,). 


1946i  104  Ch.  89 

Causes  of  fires;  investigating  authorities. 
Section  1946i.  1.  The  state  fire  marshal  and  the  chief  of  the  fire 
department  of  every  city  or  village  in  which  a  fire  department  is  estab- 
lished, and  the  mayor  of  every  incorporated  city,  and  the  president  of 
the  village  board  of  every  incorporated  village  in  which  no  fire  depart- 
ment exists,  and  the  town  clerk  of  every  organized  township  without 
the  limits  of  any  organized  city  or  village  shall  investigate  or  cause  to 
bo  investigated  the  cause,  origin  and  circumstances  of  every  fire  occur- 
ring in  such  city,  village  or  town  by  which  property  has  been  destroyed 
or  damaged  when  the  damage  exceeds  twenty-five  dollars,  except  that 
all  fires  of  unknown  origin  shall  be  reported,  and  shall  especially  make 
investigation  as  to  whether  such  fire  was  the  result  of  carelessness, 
accident  or  design. 


Investigations. 

2.  Such  investigation  shall  be  begun  within  two  days  of  the  occur- 
rence of  such  fire,  and  the  state  fire  marshal  shall  have  the  right  to 
supervise  and  direct  such  investigation  whenever  he  deems  it  expedient 
or  necessary. 

FiVe  reports  and  records. 

3.  The  officer  making  investigation  of  fires  occurring  in  cities,  vil- 
lages and  towns  shall  forthwith  notify  said  state  fire  marshal  and  shall 
within  one  week  of  the  occurrence  of  the  fire,  furnish  to  the  said  state 
fire  marshal  a  written  statement  of  all  the  facts  relating  to  the  cause 
and  origin  of  the  fire,  and  such  further  information  as  may  be  called  for 
by  the  blanks  furnished  by  said  state  fire  marshal.  The  state  fire  mar- 
shal shall  keep  in  his  office  a  record  of  all  fires  occurring  in  the  state, 
together  with  all  facts,  statistics  and  circumstances  including  the 
origin  of  the  fires,  which  may  be  determined  by  the  investigations  pro- 
vided by  sections  1946h  to  1946q,  inclusive;  such  statistics  shall  be  at 
all  times  open  to  the  public  inspection. 

Section  19iGi  is  referred  to  in  sees.  19J,(Jm,  19.',i>n,  19',6o,  19iGq. 


Reports  of  fires. 

5.  The  occupant  and  owner  of  any  premises  upon  which  any  fire  shall 
occur  shall  immediately  give  written  notice  thereof,  specifying  the 
time,  place,  amount  of  damage,  and  cause  so  far  as  known,  to  the  chief 
of  the  fire  department  when  the  property  is  located  where  there  is  a  fire 
department,  or  if  there  be  none,  then  to  the  state  fire  marshal  at  Madi- 
son, Wisconsin.  Such  notice  may  be  sent  by  mail.  No  proof  of  loss 
under  any  policy  of  insurance  shall  be  made  until  such  notice  has  been 
given  by  or  in  behalf  of  such  occupant  or  owner,  and  a  notice  given  by 
one  shall  be  sufficient  for  both  the  owner  and  occupant.  A  form  for 
such  notice,  approved  by  the  state  fire  marshal,  reciting  this  subsection, 
shall  be  attached  to  every  policy  of  fire  insurance  issued  in  this  state. 


Ch.  89  105  1946k 

Arson;  prosecution;  attorney's  duties. 
Section  1946j.  1.  The  state  fire  marshal  shall,  when  in  his  opinion 
further  investigation  is  necessary,  take  or  cause  to  be  taken  the  testi- 
mony on  oath  of  all  persons  supposed  to  be  cognizant  of  any  facts  or 
to  have  any  means  of  knowledge  in  relation  to  the  matter  as  to  which 
an  examination  is  herein  required  to  be  made,  and  if  he  shall  be  of  the 
opinion  that  there  is  evidence  sufficient  to  charge  any  person  with  the 
crime  of  arson,  he  shall  cause  such  person  to  be  arrested  and  charged 
with  such  offense,  and  shall  furnish  to  the  proper  prosecuting  attorney 
all  such  evidence,  together  with  the  copy  of  all  names  of  witnesses  and 
all  the  information  obtained  by  him,  including  a  copy  of  all  pertinent 
and  material  testimony  taken  in  the  case. 

2.  The  attorney-general  shall  aid  and  assist  district  attorneys  in  the 
prosecution  of  all  arson  cases  in  all  courts  of  the  state,  and  the  actual 
expenses  of  the  attorney-general  or  his  assistants  in  preparation  for  and 
attendance  upon  such  prosecutions  under  this  section  shall  be  paid  out 
of  the  state  treasury  and  charged  to  the  appropriation  for  commissioner 
of  insurance  as  ex  officio  state  fire  marshal. 

3.  The  attorney-general  and  district  attorney  shall  make  such  re- 
ports to  the  state  fire  marshal,  of  the  proceedings  and  result  of  all 
prosecutions  for  arson  as  reciuired  by  him. 

4.  For  this  purpose  the  attorney-general  is  hereby  authorized  to 
employ  such  assistants  as  may  be  necessary  for  carrying  out  the  pro- 
visions of  this  section.  The  attorney  in  the  state  fire  marshal's  depart- 
ment shall,  without  further  examination,  be  eligible  for  employment 
under  this  subsection.  Salaries,  compensations  and  expenses  of  such 
assistants  shall  be  charged  to  the  appropriation  for  commissioner  of 
insurance  as  ex  officio  state  fire  marshal. 

Section  19i6j  is  referred  to  in  sees.  20.55,  I'JJfGi,  WJfGn,  19Jfio,  19Jfiq. 

Persons  and  papers;  witness  fees;  inquisitions,  private  and  separate. 

Section  1946k.  1.  The  state  fire  marshal,  chief  assistant  marshal, 
and  deputy  state  fire  marshals  shall  each  have  the  power  in  any  county 
of  the  state  of  Wisconsin,  to  summon  and  compel  the  attendance  of 
witnesses  before  them,  or  either  of  them,  to  testify  in  relation  to  any 
matter  which  is  by  the  provisions  of  this  act,  a  subject  of  inquiry  and 
investigation,  and  may  require  the  production  of  any  book,  paper  or 
document  deemed  pertinent  thereto  by  them  or  either  of  them.  Such 
witness  shall  be  subpoenaed  in  the  same  manner  as  witnesses  in  circuit 
court.  They  shall  receive  the  same  compensation,  which  shall  be  paid 
out  of  the  general  fund,  upon  vouchers  signed  by  the  state  fire  marshal, 
chief  assistant  fire  marshal,  or  deputy  fire  marshal,  before  whom  any 
witnesses  shall  have  attended,  and  such  officer  shall  at  the  close  of 
the  investigation  wherein  such  witness  was  subpoenaed  certify  to  the 
attendance  and  mileage  of  such  witness,  which  certificate  shall  be  filed 
in  the  office  of  the  state  fire  marshal.  Payments  for  compensation 
under  this  section  shall  be  charged  to  the  appropriation  for  the  state 
fire  marshal.  All  investigations  held  by  or  under  the  direction  of  said 
state    fire    marshal,    or   his    subordinates,    may,    in    his    discretion,    be 


Jf)46n  106  Ch.  89 

private,  and  persons  other  than  those  required  to  be  present  by  the 
provisions  of  this  act,  may  be  excluded  from  the  place  where  such  In- 
vestigation is  held,  and  witnesses  may  be  kept  separate  and  apart  from 
each  other,  and  not  allowed  to  comnuxnicate  with  each  other  until 
they  have  been  examined. 
Referred  to  in  20.55  (i)  (c). 

Oaths;  perjury, 
2.  Said  state  fire  marshal,  chief  assistant  fire  marshal,  deputy  state 
fire  marshals,  and  assistant  state  fire  marshals  are  hereby  authorized 
and  empowered  to  administer  oaths  and  affirmations  to  any  persons  ap- 
pearing as  witnesses  before  them;  and  false  swearing  in  any  matter 
or  proceeding  aforesaid  shall  be  deemed  perjury  and  shall  be  punished 
as  such. 

Entry  to  buildings  after  fires. 

4.  Said  state  fire  marshal  and  his  subordinates,  or  either  of  them, 
shall  have  the  authority  at  all  reasonable  hours  in  performance  of 
the  duties  imposed  by  the  provisions  of  this  act,  to  enter  upon  and 
examine  any  building  or  premises  where  any  fire  has  occurred,  and 
other  buildings  or  premises  adjoining  or  near  the  same. 

Section  19.>,6k  (,s  referred  to  in  sees.  l<JJ,i>i.  Ji)J,(Jn,  19^60,  lOJiGq. 

Entry  of  buildings  generally. 
Section  19461.  1.  The  state  fire  marshal,  his  chief  assistant  and 
deputies,  upon  complaint  of  any  person,  or  without  any  complaint  pre- 
viously entered,  shall  have  a  right  at  all  reasonable  hours,  for  the 
purpose  of  examination,  to  enter  into  and  upon  all  buildings  and  prem- 
ises within  their  jurisdiction. 

Officers'  neglect  of  duty;     Penalty. 
Section  1946m.     Any  officer  referred  to  in  section  19461,  who  neglects 
to  comply  with  any  of  the  requirements  of  this  act  shall  upon  conviction 
be  punished  by  a  fine  of  not  less  than  twenty-five  dollars  nor  more  than 
two  hundred  dollars  for  each  neglect  or  violation. 

Salaries  and  fees. 
SixTio.N  1946n.  1.  All  officers  who  shall  perform  any  service  at  the 
request  of  any  such  state  fire  marshal,  chief  assistant  fire  marshal,  or 
deputy  fire  marshal,  shall  receive  the  same  fees  as  officers  in  justice 
courts,  and  such  fees  shall  be  paid  out  of  the  general  fund  in  the  same 
manner  as  witnesses  testifying  under  sections  1946h  to  1946q,  inclusive. 
Such  fees  shall  be  charged  to  the  appropriation  for  the  state  fire 
marshal. 

5.  The  state  fire  marshal  sliall  keep  on  file  in  his  office  an  itemized 
statement  of  all  expenses  incurred  by  his  department,  and  shall  ap- 
prove all  vouchers  issued  therefor,  before  the  same  are  submitted  to  the 
secretary  of  state  for  payment,  which  said  voucher  shall  be  allowed  and 
paid  in  the  same  manner  as  other  claims  against  the  state. 

Srf/ioM  l'.l.',€n    Ut  referred  to  in  20.55  (!,)  (e).  ■£(1.55,  1915m   (It),  lU.ilU,  lUiGo.   lUiCj. 


Ch.  89  107  1946x 

Not  to  engage  in  other  business. 

Section  1946o.  The  state  fire  marshal  shall  not  engage  in  any  other 
business,  and  he  or  one  of  his  chief  subordinates  shall  at  all  times  be  in 
the  office  of  the  fire  marshal  ready  for  such  duties  as  are  required  by 
sections  1946h  to  1946q,  inclusive. 

Section  19lfio  is  referred   to   in  19.'tCn,  l'J46n,  19Jt6q. 

Annual  report. 
Section  1946p.  The  fire  marshal  shall  submit  annually  as  early  as 
consistent  with  full  and  accurate  preparation,  a  detailed  report  of  his 
official  actions  to  the  governor,  such  report  to  cover  the  year  ending 
December  thirty-first  preceding.  Such  report  may  be  combined  with 
the  report  of  the  commissioner  of  insurance  on  fire  and  marine  in- 
surance. 

Section  19J,6p  is  refey-red   to  in  lf<J,Gi,  lO^Gn,  19J,6o,  1946q. 

Fees  to  municipal  officers  for  reporting  fires. 

Section  1946q.  1.  There  shall  be  paid  to  the  chiefs  of  the  fire  depart- 
ments, and  to  mayors  of  cities,  who  do  not  receive  to  exceed  fifty 
dollars  annually  as  compensation  for  their  services  as  such  chief,  and 
mayors,  and  to  presidents  of  the  village  boards  and  to  the  township 
clerk  of  every  organized  township,  who  are  by  sections  1946h  to  1946q, 
inclusive,  required  to  report  fires  to  the  state  fire  marshal,  the  sum  of 
one  dollar  for  each  fire  reported  to  the  satisfaction  of  the  state  fire 
marshal,  and  in  addition  thereto,  mileage  at  the  rate  of  ten  cents  per 
mile  for  each  mile  traveled  to  and  from  the  place  of  the  fire.  Said 
allowance  shall  be  paid  by  the  state  fire  marshal  at  the  close  of  each 
fiscal  year  out  of  any  funds  that  may  be  appropriated  for  the  use  of 
the  office  of  said  state  fire  marshal. 

Salaried  chiefs  and  mayors  excepted. 

2.  All  chiefs  of  departments  who  receive  a  stated  salary  and  devote 
their  entire  time  to  the  duties  of  chief  of  the  department,  and  those 
mayors  of  cities  who  receive  a  stated  salary  exceeding  fifty  dollars,  as 
such  officer,  shall  be  precluded  frofti  receiving  any  extra  allowance  for 
the  report  herein  mentioned. 

Section  19Jfiq  is  referred  to  in  l'.)J,(ii.  J9J,6n   19i6o. 


LIFE  INSURANCE 

Life  insurance,  words  and  phrases. 

Section  1946x.  Unless  the  context  of  any  statute  or  law  relating  to 
life  insurance  indicates  otherwise,  the  following  words  and  phrases 
shall  be  understood  in  the  sense  herein  set  forth  and  defined: 

(1)  The  "amount  at  risk,"  in  any  policy  year,  is  the  difference 
between  the  sum  insured  in  such  policy  year  and  the  terminal  reserve 
for  such  policy  year. 

(2)  "Beneficiary,"  is  the  person  in  whose  favor  a  policy  is  written. 

(3)  "Company,"  includes  all  corporations,  associations,  partnerships 
or  individuals,  engaged  as  principals  in  the  business  of  life  insurance. 


1947  108  Ch.  89 

except  fraternal  or  beneficiary  corporations,  societies,  orders  or  associa- 
tions for  the  relief  of  members  or  beneficiaries,  orders  or  associations 
for  the  relief  of  members  on  the  mutual  or  assessment  plan. 

(4)  "Deposit,"  is  the  terminal  reserve  on  a  policy  discounted  to 
the  beginning  of  the  policy  year  at  the  rate  of  interest  assumed. 

(5)  "Domestic  company,"  is  any  company  organized  or  incorporated 
under  the  laws  of  this  state. 

(7)  "Foreign  company,"  is  any  company  not  organized  or  incorpo- 
rated under  the  laws  of  this  state. 

(8)  "Insured,"  is  the  person  upon  whose  life  the  contract  of  insur- 
ance is  written. 

(9)  "Mortality  charge,"  is  the  provision  at  the  beginning  of  the 
policy  year  for  the  mortality  on  account  of  such  policy  year,  according 
to  the  table  of  mortality  adopted  and  the  rate  of  interest  assumed. 

(10)  "Policy,"  is  the  contract  issued  by  the  company  to  the  insured. 

(11)  "Policy  anniversary,"  is  any  anniversary  of  the  date  of  the 
policy,  unless  otherwise  specified  in  the  policy. 

(12)  "Policy  year,"  is  the  year  beginning  with  the  date  of  the  policy 
or  any  anniversary  thereof,  unless  otherwise  specified  in  the  policy. 

(13)  "Premium,"  is  the  payment  stipulated  in  the  policy  to  be  made 
by  the  insured  to  the  company  during  any  one  policy  year. 

(14)  The  "reserve,"  at  any  time  within  the  policy  year  is  the  deposit 
for  such  year  improved  at  the  assumed  rate  of  interest  to  such  time 
within  the  policy  year  together  with  the  proportional  unused  part  of 
the  mortality  charge  for  such  year. 

(15)  The  "sum  insured,"  under  a  policy  in  any  policy  year  is  the 
value  of  the  guaranteed  payments  and  benefits  stipulated  to  be  made  or 
granted  if  it  should  mature  within  such  policy  year. 

(16)  The  "terminal  reserve,"  is  the  reserve  at  the  end  of  the  policy 
year,  and  is  the  sum  sufficient,  with  the  net  premiums  coming  due,  to 
provide  for  the  future  mortality  charges,  and  mature  the  policy  accord- 
ing to  its  terms,  all  computed  upon  the  table  of  mortality  adopted  and 
the  rate  of  interest  assumed. 

Domestic  life  insuranct  companies;    membership  and  capital. 
Skction  1947.     1.  Any  number  of  residents  of  this  state,  not  less  than 
nine,  may  form  a  corporation  either  with  or  without  capital  stock  for 
the  purpose  of  granting  insurance  upon  the  lives  of  persons. 
Contents  of  articles. 
2.     Such  persons  shall  make,  sign  and  file  in  the  office  of  the  com- 
missioner of  insurance  articles  of  organization  stating: 

(a)  That  they  associate  for  the  purpose  of  forming  a  corporation  to 
transact  the  business  of  insurfng  lives,  stating  the  nature  and  kind 
thereof; 

(b)  The  name  of  the  corporation  and  the  place  where  the  principal 
office  for  the  transaction  of  the  business  shall  be  located; 

(c)  The  capital  stock,  if  any,  the  number  of  shares  thereof  and  the 
amount  of  each  share; 

(d)  The  designation  of  the  general  officers,  and  the  number  of  di- 
rectors, which  shall  not  be  less  than  seven; 


Ch.  89  109  1947-3 

(e)  The  mode  and  manner  of  electing  directors,  filling  vacancies  in 
their  number,  and  their  terms  of  office; 

(f )  The  period  for  the  commencement  and  termination  of  their  fiscal 
year ; 

(g)  Such  other  provisions  or  articles  not  inconsistent  with  law  as 
they  may  deem  proper  to  be  inserted  therein  for  the  interests  of  such 
corporation  or  the  accomplishment  of  the  purposes  thereof,  or  to  define 
the  manner  in  which  the  corporate  powers  granted  by  law  shall  be 
exercised. 

Conditions  precedent  to  doing  business;    risks,  minimum  number; 
maximum  single;    special  guaranty  fund;    capital  stock;    fee. 

3.  No  such  corporation  shall  transact  any  business  of  insurance, 
until  all  the  following  conditions  shall  be  complied  with: 

(a)  If  organized  without  capital  stock  at  least  two  hundred  persons 
shall  have  subscribed  for  not  less  than  one  thousand  dollars  of  insur- 
ance each  and  passed  a  prescribed  medical  examination  and  shall  have 
each  paid  one  full  annual  premium  in  cash  upon  the  insurance  sub- 
scribed for,  amounting  in  the  aggregate  to  at  least  twenty  thousand 
dollars.  Or,  in  lieu  of  such  subscriptions  for  insurance,  the  company 
shall  provide  and  hold  a  special  guaranty  fund  of  at  least  twenty-five 
thousand  dollars  in  cash  or  invested  as  prescribed  in  section  1951  of 
the  statutes,  to  be  used  for  no  purpose  other  than  the  payment  of  death 
losses,  until  the  largest  policy  in  force,  deducting  any  reinsurance 
thereon  in  authorized  companies,  shall  not  exceed  one-half  of  one  per 
centum  of  the  total  insurance  in  force,  deducting  all  such  reinsurance. 
Such  company  may  borrow  a  sum  of  money  sufficient  to  provide  the 
amount  to  be  held  as  a  special  guaranty  fund  and  an  additional  sum  to 
defray  the  expenses  of  organization  not  exceeding  ten  thousand  dollars. 
This  loan  shall  not  be  a  liability  and  the  agreement  therefor  shall  so 
provide  and  that  the  principal  and  interest  thereon  shall  only  be  repaid 
from  assets  in  excess  of  all  liabilities.  The  agreement  shall  also  pro- 
vide for  interest  at  a  rate  not  exceeding  eight  per  centum  per  annum 
and  after  the  release  of  the  special  guaranty  fund  the  principal  shall  be 
repaid  in  the  discretion  of  the  board  of  directors  or  at  such  times  as 
fixed  in  said  agreement.  Solicitation  of  subscriptions  for  insurance 
under  this  section  may  be  made  by  agents  holding  a  certificate  of 
authority  to  be  issued  by  the  commissioner  of  insurance.  Every  appli- 
cation for  such  insurance  shall  contain  a  statement  that  the  Issuance 
of  the  policy  is  contingent  upon  the  completion  of  the  organization  of 
the  company. 

(b)  If  organized  with  capital  stock,  until  a  capital  stock  of  at  least 
one  hundred  thousand  dollars  and  a  special  surplus  of  at  least  twenty- 
five  thousand  dollars  shall  have  been  subscribed  for  and  fully  paid  in 
and  is  held  in  cash  or  invested  as  provided  in  section  1951  of  the 
statutes.  No  part  of  such  special  surplus  shall  be  used  for  any  purpose 
other  than  the  payment  of  death  losses  while  the  largest  policy  in  force, 
deducting  any  reinsurance  thereon  in  authorized  companies,  shall  ex- 
ceed one-half  of  one  per  centum  of  the  total  insurance  in  force,  deduct- 
ing all  such  reinsurance. 


1947—3  110  Ch.  89 

(c)  There  shall  have  been  paid  to  the  insurance  commissioner  in 
case  of  a  corporation  organized  without  capital  stock,  a  fee  of  one  hun- 
dred dollars,  and  in  case  of  a  corporation  organized  with  capital  stock, 
a  fee  equal  to  that  required  upon  the  incorporation  of  other  corpora- 
tions under  chapter  86  of  the  statutes,  but  no  such  fees  shall  be  re- 
quired to  be  paid  until  at  the  time  of  the  issuing  of  the  certificate  of 
authority  under  subsection  (d). 

(d)  A  certificate  shall  have  been  made  and  filed  by  the  commis- 
sioner of  insurance  in  his  office  setting  forth  that  such  corporation  has 
complied  with  all  the  provisions  of  the  law  and  is  authorized  to  transact 
the  business  of  life  insurance. 

Election  of  directors  to  fill  vacancies  created  by  sale  or  transfer  of 
stock. 

(6)  Every  such  life  insurance  company  organized  with  a  capital 
stock,  licensed  to  transact  business  in  this  state,  as  a  condition  pre- 
cedent to  license  or  relicense  to  transact  business,  shall  file  with  the 
department  of  insurance  a  full  and  complete  record  of  its  stockholders, 
shares  of  stock  and  transfers— the  form  of  such  record  to  be  prescribed 
by  the  commissioner  of  insurance,  which  shall  be  subject  only  to  official 
or  judicial  inspection — and  no  transfer  of  any  shares  of  the  stock  of 
any  such  company  shall  become  effective  and  the  stockholder  of  record 
released  from  personal  liability  until  notice  of  such  transfer  has  been 
filed  with  the  commissioner  of  insurance  and  such  transfer  of  interest 
recorded  in  such  stockholder's  record  on  file  in  the  department  of 
insurance. 

No  such  company  shall  have  authority  to  issue  any  new  certificates 
representing  any  shares  of  its  capital  stock  in  exchange  or  transfer  of 
shares  of  stock  heretofore  issued,  or  any  new  or  additional  shares,  or 
permit  the  voting  on  any  question  by  the  holder  of  any  such  new  or 
transferred  stock,  or  permit  the  election  of  any  holder  of  such  new  or 
transferred  stock  as  a  member  of  the  board  of  directors  or  officer  of 
such  company,  where  such  election  is  conditioned  as  qualifying  as  a 
stockholder,  until  notice  of  the  transfer,  exchange  or  new  issue  of  such 
capital  stock  certificates  or  shares  has  been  filed  with  the  commissioner 
of  insurance  and  the  receipt  of  such  notice  and  the  entry  thereof  in  the 
stockholders'  record  in  the  department  of  insurance  acknowledged 
by  the  commissioner. 

All  vacancies  on  the  board  of  directors  of  any  such  life  insurance 
company  caused  by  or  due  to  any  sale,  transfer  or  exchange  of  shares 
or  certificates  of  the  capital  stock  shall  be  filled  only  by  election  at  the 
regular  meeting  of  the  stockholders  of  the  company,  or  at  a  special 
meeting  of  the  stockholders  called  for  such  purpose,  of  which  meeting 
not  less  than  twenty  days'  notice  shall  be  given  to  each  stockholder 
and  a  copy  of  such  call  filed  with  the  commissioner  of  insurance  not 
less  than  fifteen  days  prior  to  the  date  of  such  election. 

No  person  qualifying  as  a  stockholder  at  a  meeting  of  the  stock- 
holders of  the  company  by  reason  of  new,  transfeiTed  or  exchanged 
shares  of  the  capital  stock,  shall,   within  one  year  from  the  date  of 


Ch.  89  111  1947—4 

recording  such  new,  transferred  or  exchanged  shares  of  certificates,  be 
permitted  to  act  or  vote  as  the  representative  of  any  other  shares  or 
certificates  of  stock  than  such  as  are  recorded  in  his  name. 

Whenever  a  majority  of  all  of  the  shares  or  certificates  are  involved 
in  the  sale  or  transfer  of  the  capital  stock  of  a  company,  it  shall  be  the 
duty  of  the  commissioner  of  insurance  to  examine  into  all  the  condi- 
tions and  details  of  such  transaction  and  to  authorize  the  recording  of 
such  sale  or  transfer  of  the  shares  or  certificates  conveying  control  only, 
if  all  requirements  of  law  have  been  complied  with  and  the  interests 
of  the  policyholders  properly  safeguarded;  and  provided  further,  that 
whenever  the  sale  or  transfer  of  such  control  involves  the  transfer  or 
reinsurance  of  the  business  of  the  company,  the  policyholders  of  the 
company  shall  first  be  given  an  opportunity  by  a  direct  vote,  under  the 
supervision  of  the  commissioner  of  insurance,  to  mutualize  the  com- 
pany by  the  purchase  of  the  shares  or  certificates  of  the  capital  stock 
by  the  company  at  the  same  price,  before  any  transfer  of  shares  or 
certificates  of  the  capital  stock  shall  otherwise  be  recorded  and  ac- 
knowledged by  the  commissioner  of  insurance,  or  a  reinsurance  of  the 
business  of  the  company  permitted. 

Failure  to  comply  with  the  provisions  of  this  section  shall  make 
it  the  imperative  duty  of  the  commissioner  of  insurance  to  refuse  li- 
cense or  reiicense  or  to  revoke  any  and  every  certificate  of  authority 
of  the  company  to  transact  business  in  this  state,  and  such  non-com- 
pliance shall  subject  the  members  of  the  board  of  directors,  and  the 
stockholders  of  record  of  the  stock  transferred  or  exchanged  or  issued 
in  violation  of  these  provisions,  to  personal  liability  for  any  losses  sus- 
tained by  the  company  or  its  policyholders  by  reason  of  any  violation 
01  this  section. 

General    corporation    laws    applicable;      insurance    commissioner's 
functions. 

4.  The  provisions  of  chapter  *86  of  the  statutes  and  the  acts  amend- 
atory thereof  relating  to  corporations  under  the  general  law  shall  apply 
to  all  corporations  mentioned  in  this  section  except  so  far  as  the  same 
are  inconsistent  with  the  provisions  of  the  law  relating  to  life  insurance 
companies.  The  manner  of  filing  articles  of  incorporation  shall  be 
the  same,  except  that  such  articles  shall  be  filed  with  the  fees  paid 
to  the  commissioner  of  insurance.  The  manner  of  filing  amendments 
and  the  fee  upon  the  filing  of  any  amendment  shall  be  the  same,  except 
that  such  amendment  shall  be  filed  with  and  the  fees  paid  to  the  com- 
missioner of  insurance.  In  case  the  corporation  is  formed  without 
capital  stock  the  signers  of  the  articles  shall,  subject  to  the  approval  of 
the  commissioner  of  insurance,  fix  the  time  and  place  for  the  first  meet- 
ing for  the  election  of  officers,  which  time  and  place  shall  be  specified 
In  the  certificate  of  authority  to  do  business  heretofore  mentioned;  but 
the  signers  of  such  articles  shall  give  written  notice  thereof  by  mail  to 
each  person  subscribing  for  insurance  at  least  twenty  days  prior  to 
the  holding  of  such  meeting. 


1947a  112  Ch.  89 

Licenses  requisite  for  alt  life  insurance;     revocation  for  removal  of 
actions. 

5.  No  life  insurance  corporation  whatever  shall  do  any  business  in 
this  state,  nor  shall  any  person  act  as  agent  or  otherwise  within  this 
state  in  receiving  or  procuring  applications  for  life  insurance  or  in  any 
manner  aid  in  transacting  such  business  for  any  such  corporation  until 
it  shall  have  first  procured  a  license  from  said  commissioner  authorizing 
it  to  issue  policies  of  insurance  in  this  state  and  have  paid  therefor  the 
license  tee  required  to  be  paid  by  section  76.34,  provided,  that  in 
case  any  such  life  insurance  corporation  organized  under  the  laws  of 
any  other  state  or  country,  having  procured  license  as  herein  pro- 
vided, shall  remove  or  make  application  to  remove  into  any  court  of  the 
United  States  any  action  or  proceeding  begun  in  any  court  of  this  state 
upon  a  claim  or  cause  of  action  arising  out  of  any  business  or  trans- 
action done  in  this  state  it  shall  be  and  is  hereby  made  the  imperative 
duty  of  the  commissioner  to  revoke  any  and  every  authority,  license  or 
certificate  granted  to  such  corporation  or  any  agent  thereof  to  transact 
any  business  in  this  state,  and  no  such  corporation  or  agent  thereof 
shall  thereafter  transact  any  business  of  insurance  in  this  state,  till 
again  duly  authorized,  and  no  renewal,  license  or  certificate  of  authority 
shall  be  granted  to  such  corporation  for  three  years  after  such  revo- 
cation; and,  provided  further,  that  if  the  license  of  any  such  corporation 
shall  be  revoked  as  aforesaid,  the  attorney  last  appointed  and  the 
agent  last  designated  as  acting  as  such  for  it  shall  continue  attorney 
and  agent  for  the  purpose  of  serving  process  for  beginning  actions  upon 
any  policy  or  liability  incurred  or  contracted  in  this  state,  while  it 
transacted  business  therein  so  long  as  any  such  liability  shall  exist. 

*  Chapter  86  includes  sections  1772  to  177^n. 
Section  19i7  is  refen-ed  to  in  (3),  1947a. 

Personal,  accident  and  health  insurance. 
Section  1947a.  Any  life  insurance  company  incorporated  under  the 
laws  of  this  state,  may  engage  in  the  business  of  personal,  accident 
and  health  insurance,  as  its  articles  of  association  shall  provide,  and 
may  issue  such  contracts  either  independently  of  or  in  conjunction  with 
its  life  or  endowment  policies;  provided,  that  no  accident,  health  or 
disability  benefits  except  total  and  permanent  disability  benefits  may  be 
incorporated  in  its  life  or  endowment  policies  and  that  when  the  total 
and  permanent  disability  benefits  are  incorporated  in,  or  contained  in 
contracts  issued  in  conjunction  with  its  life  or  endowment  policies  and 
when  accidental  death  benefits  are  contained  in  separate  and  distinct 
contracts  issued  in  conjunction  with  such  policies  and  valued  under  the 
provisions  of  subsection  3  of  section  1950d,  paragraph  (g)  of  subsection 
1  of  section  1950  and  section  1960,  except  paragraph  (2)  of  subsection 
12,  shall  not  apply.  Any  foreign  life  insurance  company,  by  complying 
with  this  section,  may  also  be  licensed  to  transact  such  business,  if 
authorized  so  to  do  by  its  charter  or  articles  of  organization  *  *  ♦ 
and  by  the  state  in  which  it  is  incorporated. 


Ch.  89  113  1947d 

Mutual    life    insurance    elections;      equality    of    policyholders;    as- 
signees;   terms  of  directors. 

Section  1947c.  At  every  general  election  of  directors  or  trustees  in 
any  domestic  mutual  life  insurance  company,  whether  incorporated  by 
special  act  or  general  law  and  anything  to  the  contrary  in  its  charter, 
certificate,  articles  of  incorporation  or  by-laws,  notwithstanding,  every 
policyholder  whose  insurance  shall  be  in  force,  and  shall  have  been 
in  force  for  at  least  one  year  prior  thereto,  shall  be  entitled  to  one 
vote  without  other  qualification.  Every  policyholder  entitled  to  vote 
shall  have  the  same  number  of  votes  irrespective  of  the  number  of 
policies  or  the  amount  of  insurance  held  by  him,  and  shall  have  one 
vote  for  each  director  to  be  elected,  and  may  cast  all  such  votes  for  one 
candidate  or  distribute  them  among  the  number  as  he  may  elect.  Un- 
less a  policy  shall  have  been  assigned  more  than  six  months  prior  to 
the  election  by  an  assignment  absolute  on  its  face  to  an  assignee  other 
than  the  company  which  shall  have  issued  the  policy,  the  person  upon 
whose  application  the  policy  shall  have  been  issued,  and  if  the  applica- 
tion be  signed  by  more  than  one  person,  each  person  whose  life  is  in- 
sured shall  be  deemed  to  be  a  policyholder  entitled  to  vote  as  afore- 
said. In  case  the  policy  shall  have  been  assigned  as  aforesaid,  the 
assignee  shall  be  deemed  to  be  a  policyholder  entitled  to  vote,  provided 
his  signature,  either  attested  by  the  assignor  or  acknowledged  in  like 
manner  as  in  case  of  a  deed  to  be  recorded  in  this  state,  shall  have 
been  filed  at  the  home  office  of  the  company.  Any  policyholder  entitled 
to  vote  at  any  election  shall  be  qualified  to  fill  any  office  to  be  voted 
for  at  any  such  election.  Such  a  general  election  shall  be  held  at  inter- 
vals of  not  more  than  two  years.  At  each  such  election  not  less  than 
one-fourth  of  the  total  number  of  directors  provided  for  in  the  charter 
or  articles  shall  be  elected.  No  appointment  or  selection  of  a  director 
to  fill  a  vacancy  other  than  when  made  by  general  election  shall  extend 
beyond  the  next  general  election. 

Section  19i7c  is  referred  to  in  lOJftj. 

Indeoendent  tickets;    directors  to  furnish  lists  of  voters. 

Section  1947d.  Upon  written  request,  filed  with  the  company,  at  the 
time  of  making  the  nomination,  and  within  thirty  days  thereafter,  the 
company  shall,  at  its  own  expense,  furnish  to  the  policyholders  making 
nomination  of  an  independent  ticket  a  full  and  complete  printed  list  of 
the  names  and  last  known  post-office  addresses  of  all  policyholders 
whose  insurance  was  in  force  twelve  months  prior  to  the  day  fixed  for 
an  election.  Such  list  shall  be  made  separately  for  each  state,  terri- 
tory and  country  and  shall  be  classified  by  post-office  addresses  and  the 
names  shall  be  arranged  alphabetically.  The  company  shall  mail  to 
each  such  policyholder  one  list,  and  no  more,  for  each  state,  territory 
or  country  requested  by  him  as  above  provided.  Such  list  shall  be 
returned  to  the  home  office  of  the  company  within  ten  days  after  such 
election. 

Section  19Ji7(l  is  referred  to   hi  lOJiTj. 

8 


1947 f  114  Ch.  89 

Directors  to  name  election  inspectors  and  administration  ticket. 
Section  1947e.  1.  At  least  three  months  prior  to  the  date  of  any 
general  election  of  directors  or  trustees  in  any  such  company,  the 
directors  or  trustees  thereof  shall  appoint  three  qualified  voters,  who 
are  not  directors  or  trustees,  as  inspectors  of  election,  who  shall  be 
paid  by  the  company,  and  such  directors  or  trustees  shall  suggest  the 
name  of  a  person  as  candidate  for  every  vacancy  to  be  filled  at  the 
ensuing  election,  and  shall  file  with  the  commissioner  of  insurance  a 
certificate  thereof,  giving  the  names,  occupations  and  addresses  of 
the  inspectors  so  appointed,  and  the  persons  whose  names  have  been  so 
suggested. 

But  name  no  other  candidates,  and  use  no  money;    penalty. 

2.  Any  officer,  trustee,  agent  or  employe  of  such  company  who  shall 
directly  or  indirectly  nominate  or  assist  or  encourage  the  nomination 
of  any  other  candidate  or  candidates  for  the  office  of  director  other 
than  those  on  the  administi'ation  ticket,  or  who  shall  use  or  expend  any 
of  the  property  or  funds  of  the  company  in  promoting  the  election  of 
any  nominee,  candidate  or  person  except  as  directed  or  authorized  in 
this  act,  shall  be  guilty  of  a  misdemeanor. 

Policyholders'  nominations. 

3.  Any  one  hundred  or  more  qualified  voters  of  such  company  may 
also  suggest  the  name  of  a  person  as  a  candidate  for  one  or  more  of 
the  vacancies  to  be  filled  at  any  such  ensuing  election,  by  filing  with 
the  commissioner  of  insurance,  and  with  the  secretary  of  the  company, 
at  its  home  office,  not  more  than  ninety  nor  less  than  sixty  days  prior 
to  such  election,  a  certificate  signed  and  acknowledged  by  them, 
giving  the  names,  occupations,  and  addresses  of  the  persons  so  sug- 
gested as  candidates,  together  with  a  written  statement  signed  by  said 
candidates,  together  with  a  written  statement  signed  by  said  candidates 
that  they  will  accept  such  office  if  elected. 

Vacancies  in  tickets. 

4.  In  case  of  the  death  or  resignation  or  incapacity  of  any  person 
so  suggested  as  a  candidate,  a  majority  of  the  board  of  directors  or 
trustees,  or  a  majority  of  the  persons  suggesting  the  name  of  such- 
nominee,  may  suggest  the  name  of  another  person  as  a  candidate  in 
his  place,  by  filing  prior  to  the  day  set  for  the  election  a  like  certificate 
with  that  required  for  the  original  nominations.  If  such  certificate  be 
filed  more  than  fifty  days  prior  to  the  election,  the  name  of  such 
person  suggested  as  a  candidate  shall  be  inserted  on  the  ballot  here- 
inafter mentioned. 

Section  l'.)!,Tc  is  referred  to  in   I'JJflj. 

Voting  by  mail;    ballot  form  and  distribution. 
Skciion  l!t47f.     In    case    any    nominal  ion    otlun-    than    the    directors' 
nomination  shall  be  made  the  company  shall  not  less  than  forty-five 
nor  more  than  seventy-five  days  from  the  oloction  cause  to  be  mailed 


Ch.  89  115  1947g 

in  a  sealed  and  postpaid  envelope,  to  each  policyliolder  wliose  name 
shall  be  on  the  list  and  whose  policy  shall  still  be  in  force  at  his  last 
known  post-office  address,  a  suitable,  gummed  return  envelope  ad- 
dressed to  the  home  office  of  the  company  and  marked  "Ballot  for 
Directors,"  together  with  a  ballot  containing  in  two  columns  the  names 
of  candidates  nominated  as  hereinbefore  provided,  arranged  alphabet- 
ically. One  column  designated,  "Directors'  Nominees"  shall  contain 
the  names  of  the  candidates  nominated  by  the  directors  or  trustees. 
Another  column  designated  "Independent  Nominees''  shall  contain  the 
names  of  candidates  nominated  by  the  policyholders.  Where  any  other 
question  is  to  be  submitted  to  the  policyholders  the  same  shall  be 
voted  upon  at  such  general  election  and  a  separate  ballot  shall  be  pro- 
vided and  mailed  with  the  other  ballots.  Such  separate  ballot  shall 
state  the  question  concisely  and  contain  space  for  voting,  thus: 

FOR     n  AGAINST     Q 

No  other  papers  or  written  or  printed  matter  shall  be  enclosed  with 
such  ballot  and  envelope  and  specimens  of  the  ballot  return  envelope 
and  sealed  envelope  shall  be  filed  with  the  commissioner  of  insurance 
before  being  so  mailed,  one  duplicate  of  such  ballot  shall,  prior  to  the 
election,  be  promptly  furnished  by  mail  by  the  company  to  any  policy- 
holder applying  therefor. 

Section  19l,lf  is  referred  to  in  ISlflj. 

Domestic  mutual;    elections;    ballot;    form. 

Section  1947g.  1.  The  provisions  contained  in  the  following  instruc- 
tions to  policyholders  shall  apply  to  and  govern  in  all  such  elections. 
All  votes  shall  be  by  ballot,  but  any  ballot  complying  with  said  instruc- 
tions may  be  used.  No  ballot  shall  be  received  or  counted  unless  pre- 
pared and  voted  substantially  as  herein  provided. 

2.     The  ballot  shall  be  in  the  following  form: 
Ballot  for  election  of  directors. 

For  (name  of  company,  home  office,  post-office  address). 
To  succeed  the  directors  whose  terms  expire  as  follows: 


Instructions  to  Policyholders. 

The  policyholder  is  entitled  to  the  same  number  of  votes  irrespective 
of  the  number  of  policies  and  amount  of  insurance  held  by  him,  and  is 

entitled  to  one  vote  for  each  of  the directors  to  be  elected, 

and  may  cast  all  such  votes  for  one  candidate  or  distribute  them  among 
the  number  as  he  may  elect.  Votes  shall  be  indicated  by  a  numeral 
placed  after  the  name  of  the  person  voted  for  thus:  "John  Doe, 
Farmer,  Madison,  Wisconsin,  (1)." 

No  fractional  vote  will  be  recognized.     On  any  ballot  recording  a 

greater  number  than  authorized  only  the  first votes  will  be 

recognized. 


J94Ti 


lib 


Ch.  89 


The  ballot  shall  specify  the  number  of  at  least  one  policy  held  by  the 
policyholder,  to  be  signed  by  him,  and  his  signature  attested  by  a 
subscribing  witness  and  shall  be  inclosed  in  a  sealed  and  postpaid 
envelope  marked  on  the  address  side,  "Ballot  for  Directors,"  addressed 
to  said  company  at  its  home  office  without  any  mark  or  designation  to 
indicate  the  identity  of  the  voter  mailing  the  same,  and  mailed  by  him 

in  person  so  as  to  be  delivered  before  four  P.  M.  on , 

192 

The  ballot  prepared  in  like  manner,  without  being  postpaid,  may 
between  ten  A.  M.  and  four  P.  M.  in  said  day,  be  voted  in  person  by 
the  policyholder  at  the  home  office  of  the  company. 


Directors'   Nominations 

Independent  Nominations 

(John  Doe, 
farmer, 

Madison.   Wis.) 

Vote 
here. 

(Richard  Roe, 
banker, 

Milwaukee,    Wis.) 

Vote 
here. 

Attested  by Signed  by 

P.  O.  Address 

P.  O.  Address Policy  No 

3.  Provided  that  this  section  shall  not  apply  to  any  election  of 
trustees  where  no  nomination  other  than  that  of  the  trustees'  nomina- 
tion shall  have  been  made. 

4.  And  provided  further  that  no  vote  shall  be  valid  or  counted  by 
the  inspectors  if  the  same  shall  have  been  cast  for  any  person  other 
than  one  suggested  as  a  candidate  in  the  certificate  or  certificates  of 
nomination  filed  with  the  commissioner  of  insurance. 

Place  and  hours  of  election. 

SiicnoN  1947h.  All  elections  of  the  company  shall  be  held  at  its 
home  office  and  the  polls  shall  be  open  from  ten  o'clock  in  the  forenoon 
until  four  o'clock  in  the  afternoon  of  the  day  of  the  election,  at  which 
time  it  shall  be  closed  and  after  which  time  no  ballot  shall  be  received. 

Section  lUlfl  is  referred  to  in  lil',7j. 


Ballot  envelopes;  delivery. 
SixTioN  19471.  1.  All  envelopes  received  at  the  home  office  of  the 
company  before  the  polls  are  closed  on  the  day  of  election  marked  sub- 
stantially as  "ballot  for  directors  (or  trustees)"  shall  be  preserved 
intact  without  opening,  and  before  the  polls  are  closed  shall  be  de- 
livered to  the  inspectors  of  election. 


Ch.  89  117  1947J 

Penalty  for  concealing  or  breaking. 

2.  Any  person  concealing  or  withholding,  or  participating  in  the 
concealment  or  withholding  from  the  inspectors  or  opening  or  being 
privy  to  the  opening  of  any  such  envelope  containing  such  ballot, 
except  as  authorized  by  law,  shall  be  guilty  of  a  misdemeanor. 

Canvass;    preservation. 

3.  All  ballots  voted  and  received  by  mail  or  otherwise,  or  delivered 
by  the  policyholder  in  person  at  the  office  of  the  company,  shall  be 
received  by  the  inspectors  subject  to  verification  and  ascertainment 
of  the  validity  thereof,  and  of  the  qualification  of  the  voter;  and,  im- 
mediately upon  the  closing  of  the  polls  the  inspectors  shall  proceed 
to  open  the  envelopes  containing  such  ballots  and  to  the  examination 
thereof,  and  shall  canvass  all  the  votes  lawfully  cast.  The  canvass 
shall  proceed  from  day  to  day,  and  the  inspectors  shall  verify  the  result 
to  the  company  as  soon  as  it  is  completed.  Any  nominee  at  such  elec- 
tion may  be  present  during  the  casting  and  canvass  of  the  vote.  All 
ballots  and  envelopes  received  by  said  inspectors  shall  immediately 
upon  completion  of  the  canvass  be  placed  in  sealed  packages  and 
preserved  by  them  until  four  months  from  the  date  of  the  election, 
subject  to  the  order  of  any  court  having  jurisdiction  of  any  proceeding 
relating  thereto. 

Returns;    tie  votes. 

4.  The  inspectors  shall  sign  and  file  with  the  secretary  of  the  com- 
pany and  commissioner  of  insurance  a  certificate  of  the  result  of  the 
election  stating  the  names  of  all  persons  for  whom  votes  have  been 
cast  and  the  number  cast  for  each,  which  shall  be  arranged  in  the 
order  of  the  number  of  votes  cast  for  each  person,  the  highest  being 
placed  first,  the  next  highest  second  and  so  on,  the  lowest  being  placed 
last.  In  case  iwo  or  more  persons  shall  have  secured  the  same  number 
of  votes  the  inspectors  shall  decide  by  lot  which  shall  stand  highest 
upon  such  list. 

Terms  of  elected  candidates. 

5.  The  person  or  persons  standing  highest  on  such  list  to  the  num- 
ber of  directors  to  be  chosen  for  the  longest  term  at  such  election  shall 
be  elected  to  such  longest  term.  The  person  or  persons  standing  next 
highest  on  such  list,  to  the  number  of  directors  to  be  chosen  for  the 
next  longest  term,  at  such  election,  shall  be  elected  to  such  next  longest 
term,  and  so  on  until  the  number  of  directors  voted  for  at  such  elec- 
tion has  been  elected. 

Section  ISlili  is  referred  to  in  lOJ/Tj. 

Mailing  of  ballot  not  to  validate  policy. 
Section  1947J.     The  mailing  by  the  corporation  of  the  said  ballot, 
to  any  person  under  the   provisions   of  sections   1947c   to   1947k,   in- 
clusive, shall  not  be  construed  as  an  admission  by  the  corporation  of 
the  validity  of  any  policy,  or  of  the  fact  that  such  person  was  a  policy- 


J947o  118  Ch.  89 

holder  of  said  company;  and  no  such  mailing  shall  be  competent  evi- 
dence against  the  corporation  in  any  action  or  proceeding,  in  which 
the  question  of  the  validity  of  any  policy  or  of  any  claim  under  it,  is 
involved. 

Trustees;     quarterly  meeting;    forfeit  for  absence. 

Skction  1947k.  The  trustees  or  directors  of  every  domestic  mutual 
life  insurance  company  aforesaid,  shall  hold  regular  meetings  at  least 
once  each  quarter  upon  such  dates  as  shall  be  designated  in  its 
charter  or  articles  of  incorporation,  or  by  the  by-laws  of  said  company. 
Any  trustee  who  shall  absent  himself  from  three  consecutive  meetings 
shall  forfeit  his  office  and  shall  not  be  eligible  to  election  again  for  a 
period  of  six  months. 

Section  I'J^'ik  is  referred  to  in  X!>.',7j. 

Mutual    life    accumulations;      policyholders'    full    right    to    partici- 
pate in. 

Sfx'tion  1947o.  1.  After  the  year  1907,  no  domestic  mutual  life  in- 
surance company  and  no  domestic  stock  life  insurance  company  here- 
after issuing  or  professing  to  issue  any  participating  policies,  shall 
issue  any  policies  except  annuities,  which  do  not,  by  their  terms,  give 
to  the  holders  thereof  full  right  to  participate  in  the  accumulations  of 
such  company  as  provided  by  the  laws  of  this  state. 

2.  After  the  year  1907,  no  foreign  mutual  life  insurance  company 
and  no  foreign  stock  life  insurance  company  issuing  or  professing  to 
issue,  after  such  date,  any  participating  policies,  shall  issue  within 
this  state  any  policies  except  annuities,  which  do  not,  by  their  terms, 
g've  to  the  holders  thereof  full  right  to  participate  as  aforesaid. 

3.  After  the  year  1912,  no  foreign  mutual  life  insurance  company 
and  no  foreign  stock  life  insurance  company  issuing  or  professing  to 
issue,  after  such  date,  any  participating  policies,  shall  transact  busi- 
ness in  this  state,  if  it  shall  issue  any  policies  except  annuities,  which 
do  not,  by  their  terms,  give  to  the  holders  thereof  full  right  to  partici- 
pate as  aforesaid. 

4.  This  section  shall  not  apply  to  paid-up  or  temporary  and  pure 
endowment  insurance  issued  or  granted  in  exchange  for  lapsed  or  sur- 
rendered policies. 

5.  This  section  shall  not  apply  to  any  company  which  keeps  and 
transacts  its  participating  and  nonparticipating  business  in  separate 
departments,  and  keeps  separate  accounts  and  maintains  a  complete 
separation  between  the  two  departments;  and  which  shows  a  surplus 
in  each  department  after  deducting  any  funds  accumulated  for  the  pay- 
ment of  dividends  under  section  1952f,  and  which  shall  file  with  the 
commissioner  of  insurance  an  agreement  for  the  benefit  of  all  policy- 
holders now  or  hereafter  residing  in  the  state  of  Wisconsin,  that,  in 
consideration  of  being  permitted  to  issue  nonparticipating  insurance  in 
this  state,  no  part  of  the  funds  accumulated  or  belonging  to  the  partici- 
pating department  shall  ever  be  transferred  to  the  nonparticipating 
department,  except  such  as  the  existing  charter  of  the  company  or 
its  policies  require. 


Ch.  89  119  1948 

Foreign   life  companies;     required   statements;     commissioner   may 
refuse  license. 

Sectiox  1947p.  Every  stock  company  doing  life  insurance  business 
on  the  participating  plaii  shall,  when  applying  to  do  business  in  this 
state,  and  before  any  license  or  certificate  of  authority  shall  be  is- 
sued, file  with  the  commissioner  of  insurance  a  statement  under  oath 
of  the  president  and  secretary,  stating: 

(a)  The  amount  of  the  unassigned  surplus  of  such  company; 

(b)  The  amount  of  said  surplus  belonging  to  the  policyholders; 

(c)  The  amount  of  such  surplus  belonging  to  the  stockholders; 

(d)  The  method  of  ascertainment  and  the  action  upon  the  part  of 
the  stockholders  of  such  company  determining  the  rights  of  such  poli- 
cyholders and  stockholders  respectively. 

No  license,  certificate  or  authority  to  transact  business  in  this  state 
shall  be  issued  to  any  such  stock  company  until  such  statement  is 
made,  and  the  commissioner  of  insurance  is  satisfied  that  the  respec- 
tive rights  of  such  po.icyholders  are  fully  and  legally  determined. 

Mutual  life  companies;  salary  maximum. 
Section  1947r.  No  domestic  life  insurance  company  transacting  a 
mutual  or  participating  business  shall  incur  or  expend  in  any  one 
year  for  any  salary,  compensation  or  emolument  to  any  officer,  trustee, 
director  or  salaried  employe  of  such  company,  either  directly  or  indi- 
rectly, any  sum  in  excess  of  twenty-five  thousand  dollars,  unless  in 
each  case  such  greater  sum  shall  be  fixed  by  the  unanimous  vote  of  the 
board  of  trustees  or  directors  at  any  regular  meeting  thereof,  or  unless 
a  greater  maximum  shall  have  been  fixed  by  a  majority  vote  of  the 
policyholders  voting  at  any  regular  election  of  directors.  Notice  of 
the  submission  of  such  question  shall  be  given  by  mail  to  each  policy- 
holder at  the  same  time  as  the  notice  of  election  is  required  to  be 
given. 

Life  insurance  companies;     license  requisite;    asset  conditions. 

Section  1948.  No  company  shall  transact  business  in  this  state  until 
it  shall  have  obtained  a  license  therefor  from  the  commissioner  of 
insurance. 

No  such  license  shall  be  issued  until  the  company  has  complied  with 
all  the  requirements  of  the  laws  of  this  state,  nor  until  after  such  ex- 
amination as  he  may  require,  the  commissioner  is  satisfied  that  its 
assets  are  properly  and  safely  secured  and  exceed  its  liabilities,  valu- 
ing its  policies  as  provided  by  the  laws  of  this  state. 

Such  value  shall  be  computed  according  to  the  face  or  nominal  sum 
named  in  such  policies  or  certificates  of  membership,  whether  payment 
thereof  is  absolute  and  provided  for  by  the  collection  of  fixed  pre- 
miums or  is  contingent  upon  assessments  to  be  levied  upon  and  col- 
lected from  the  members  of  such  corporation  or  company. 


1948m  120  Ch.  89 

Form  of  life  policy. 
Section  1948f.  1.  On  and  after  the  first  day  of  January,  1912,  no 
policy  of  life  or  disability  insurance  as  defined  in  subsections  3  and  4 
of  section  1897,  shall  be  issued  or  delivered  in  this  state  until  the  same 
has  been  approved  by  the  commissioner  of  insurance,  or  until  there 
has  been  filed  with  him  at  least  thirty  days: 

(a)  A  copy  of  the  form  of  such  policy; 

(b)  A  copy  of  any  table  of  rates  or  statement  of  benefits  furnished 
to  agents  or  to  insurants  or  to  the  public  in  this  state; 

(c)  In  case  of  life  insurance,  a  separate  statement  on  the  basis  of 
one  thousand  dollars  of  insurance  for  each  age  at  which  policies  are 
to  be  issued,  stating  in  dollars  and  cents,  for  each  year. 

(1)  the  premium; 

(2)  the  reserve;  provided  that  the  reserve  need  not  be  extended 
beyond  the  first  twenty  policy  years  until  such  policies  have  been  in 
force  for  twenty  years,  and  provided  further  that  the  reserve  for  an- 
nuity provisions  contained  in  continuous  Income  or  survivorship  con- 
tracts need  not  be  filed;  and  (3)  The  value  at  the  end  of  each  policy 
year  of  any  and  all  benefits  promised  upon  surrender,  lapse,  or  any 
change  in  the  policy,  except  that  such  value  need  not  be  extended  be- 
yond the  first  twenty  years. 

(d)  In  lieu  of  including  in  such  statment  the  reserve  mentioned  in 
paragraph  (c)  hereof,  with  the  approval  of  the  commissioner,  a  refer- 
ence may  be  made  to  any  book,  pamphlet,  or  document  on  file  with 
and  approved  by  the  commissioner  containing  such  figures.  If  any  such 
statment  for  any  age  shall  not,  as  to  such  reserve,  refer  to  figures 
so  on  file  with  the  commissioner,  but  shall  give  figures  which  do  not 
correspond  therewith,  the  company  filing  the  same  shall  pay  for 
verifying  the  same  a  fee  of  ten  dollars  for  each  age  for  which  such 
statement  shall  fail  to  correspond,  which  shall  be  paid  into  the  state 
treasury. 

2.  No  such  policy  shall  be  issued  or  delivered  in  this  state  after  the 
making  of  an  order  by  the  commissioner  giving  reasons  for  the  dis- 
approval thereof,  or  of  the  copy  or  statement  required  to  be  filed 
therewith,  and  notice  thereof  shall  have  been  given  to  the  company. 

Policy  Provisions;     industrial  excepted. 
Sk(  TioN  1948m.     After  the  year  1909  no  policy,  other  than  a  policy 
of  industrial   insurance  where  the  premiums  are  payable  monthly  or 
oftener,  shall  be  issued  or  delivered  in  this  state,  unless  it  contains  in 
substance  the  following  provisions: 

Mortality  table;  interest  rate. 
(1)  Specifying  the  table  of  mortality  and  rate  of  interest  and  method 
upon  which  the  reserve  on  such  policy  is  to  be  computed,  provided 
that  the  method  may  be  omitted  if  the  policy  be  issued  on  the  net 
level  premium  basis,  and  when  no  method  is  specified  the  policy  shall 
he  presumed   to  he  issued  on  tlip  net  level  premium  basis. 


Ch.  89  121  1949 

Premium,  separate;    application   may  contain. 

(2)  Specifying  separately  the  premium  charged  for  any  benefit 
promised  in  the  policy  other  than  lile  or  endowment  insurance,  pro- 
vided that  any  company,  required  by  the  laws  of  the  state  wherein  it 
is  organized  to  issue  a  standard  form  of  policy,  may  omit  provisions 
1  and  2  from  its  policy  and  insert  the  same  in  the  application,  if  a 
copy  thereof  shall  be  attached  to  the  policy  when  issued. 

Nonpayment,  loan;    premium  loans;     automatic,  when. 

(3)  That  upon  the  nonpayment  of  any  premium  when  due,  after 
payment  of  premiums  for  (insert  number  not  exceeding  three)  full 
years,  the  same  shall  be  paid  by  being  charged  as  a  loan  against  the 
policy  at  the  same  rate  of  interest  as  therein  specified  for  other  policy 
loans.  Such  loan  shall  be  payable  at  any  time  at  the  option  of  the 
insured,  and  shall  become  due  and  payable  only  when  the  total  of  all 
ioans  and  interest  shall  equal  the  reserve  less  the  surrender  charge 
specified  .n  the  policy.  In  such  case  each  premium  receipt  shall  show 
the  total  indebtedness  on  such  policy  to  the  company  at  the  date  of 
such  receipt. 

Extended  insurance;    paid-up  insurance;     benefits  equivalents. 

(4)  That  upon  the  nonpayment  of  any  premium  when  due,  after  pay- 
ment of  premiums  for  (insert  a  number  not  exceeding  three)  full 
years,  the  insured  shall  be  granted  as  specified  in  the  policy  either  ex- 
tended insurance  or  paid-up  insurance,  the  net  single  premium  on 
which,  computed  on  the  mortality  and  interest  assumptions  of  the 
policy,  shall  at  any  time  equal  the  reserve  less  the  surrender  charge 
specified  therein,  and  less  any  existing  indebtedness  to  the  company 
on  or  secured  by  the  policy.  Provisions  3  and  4  shall  not  be  required 
in  term  insurance  of  twenty  years  or  less,  and  either  may  be  auto- 
matic, and  either  may  be  omitted.  The  reserve  to  be  used  for  cal- 
culating the  benefits  after  the  nonpayment  of  any  premium  when  due 
provided  for  in  this  section,  may  exclude  the  reserve  held  by  the 
company  to  provide  for  total  and  permanent  disability  benefits,  if  any. 

Excess  of  liabilities  over  assets;    business  to  discontinue. 

Section  1949.  Whenever  the  assets  of  any  life  insurance  company 
shall  not  equal  its  liabilities  computed  as  provided  by  section  1948, 
the  commissioner  of  insurance  shall  give  notice  to  such  company  and 
its  agents  to  discontinue  issuing  new  policies  within  this  state  until 
such  time  as  its  assets  have  become  equal  to  its  liabilities  computed  as 
aforesaid.  Any  officer  or  agent  who,  after  such  notice  has  been  given, 
issues  or  delivers  a  new  policy  for  and  on  behalf  of  such  corporation 
before  its  funds  shall  have  been  examined  by  the  commissioner  and 
a  new  certificate  of  authority  issued  shall  forfeit  for  each  offense 
not  less  than  one  hundred  dollars  nor  more  than  one  thousand  dollars. 


1950—1  122  Ch.  89 

Valuation  of  policies;  basis,  method. 
Section  1950.  i.  Every  life  insurance  company  doing  business  in 
this  state  or  having  in  force  in  this  state,  policies  issued  therein,  shall 
hold  funds  properly  and  safely  secured  to  provide  for  its  reserve  lia- 
bility over  and  above  all  its  other  liabilities,  which  reserve  liability 
shall  be  determined  by  the  state  as  follows: 

(a)  All  policies  issued  by  a  domestic  company  after  the  year  1909 
shall  be  valued  according  to  the  expense  charges  assumed,  the  table 
of  mortality  adopted,  and  the  rate  of  interest  assumed. 

(b)  Any  policies  issued  by  a  foreign  company  after  the  year  1909 
may  be  valued  as  provided  in  subsection  (a),  provided  the  assumptions 
as  to  mortality  and  interest  shall  conform  to  the  requirements  of  sub- 
sections  1  and  2  of  section  1950c,  and  provided  the  aggregate  liability 
shall  not  be  less  than  that  resulting  from  a  valuation  under  the  laws 
of  the  state  or  country  where  the  home  office  of  said  company  is  lo- 
cated. 

(c)  All  policies  issued  before  the  year  1910,  on  any  plan  not  pro- 
viding in  every  year  for  full  net  level  premium  reserves  may  be  val- 
ued upon  such  plan  and  on  the  basis  of  either  the  American  Experi- 
ence or  the  Actuaries  Table  of  Mortality,  and  a  rate  of  interest  not 
higher  than  that  assumed  nor  higher  than  four  and  one-half  per  centum 
per  annum. 

(d)  All  policies  for  which  no  other  method  of  valuation  is  provided 
shall  except  as  hereafter  provided  be  valued  on  a  net  level  premium 
reserve  basis  computed  on  either  the  American  Experience  or  Actuaries 
Table  of  Mortality  and  a  rate  of  interest,  for  policies  issued  before 
the  year  1910,  not  higher  than  that  assumed  nor  higher  than  four 
and  one-half  per  centum  per  annum,  and  for  policies  issued  after  the 
year  1909,  not  higher  than  that  assumed  nor  higher  than  four  per 
centum  per  annum. 

(e)  Any  policies  mentioned  in  subsections  (b),"  (c),  and  (d)  may 
be  valued  to  produce  aggregate  reserve  liabilities  in  excess  of  those 
required  by  said  subsections  but  not  greater  than  such  as  would  result 
from  valuing  the  same  on  the  basis  of  the  table  of  mortality  adopted 
with  interest  at  three  per  cent  per  annum. 

(f)  The  commissioner  of  insurance  may  vary  the  standards  of  in- 
terest and  mortality  in  the  case  of  corporations  of  foreign  countries  as 
to  contracts  issued  by  such  corporations  in  other  countries  than  the 
United  States  and  in  particular  cases  of  invalid  lives  and  other  extra 
hazards,  and  value  policies  in  groups  and  use  approximate  averages 
for  fractions  of  a  year. 

Reserve  basis;    total  and  permanent  disability  benefits. 

(g)  The  reserve  liability  for  the  total  and  permanent  disability  pro- 
vision incorporated  in  policies  of  life  or  endowment  insurance  shall  be 
calculated  on  the  basis  of  "Hunter's  Disability  Table."  or  on  any  table 
based  upon  disability  experience  approved  by  the  commissioner  of  in- 
surance, with  interest  at  not  exceeding  three  and  one-half  per  cent  per 


Ch.  89  123  1950—7 

annum;  provided,  that  in  no  case  shall  the  reserve  in  any  policy  year 
be  less  than  the  proportional  unused  part  of  the  net  annual  premium 
calculated  by  such  table  for  the  disability  benefit. 

Liability;    premium;    deficient. 

2.  In  every  case  in  which  the  actual  premium  charged  for  an  in- 
surance is  less  than  the  net  premium  for  such  insurance,  required  ac- 
cording to  the  table  of  mortality  adopted  and  rate  of  interest  assumed, 
the  company  shall  also  be  charged  with  the  present  value  of  an  an- 
nuity, the  amount  of  which  shall  equal  the  deficiency  by  reason  of  the 
premium  charged  being  less  than  the  net  premium  required. 

Liability,  expense  charge,  when. 

3.  In  every  case  where  the  premium  stipulated  in  any  policy  shall 
provide  for  an  expense  charge  exceeding  in  any  year  the  provision  for 
expenses  in  such  year  the  valuation  shall  include  a  liability  computed 
on  the  basis  of  the  excess  of  such  expense  charge. 

Valuation;    department  of  foreign  state. 

4.  The  valuation  annually  made  and  accepted  by  the  insurance  de- 
partment of  any  other  state  of  the  United  States  or  any  other  coun- 
try of  any  policies  of  a  company  located  in  such  other  state  or  coun- 
try, if  such  valuation  shall  be  certified  as  true  and  correct  by  the  in- 
surance commissioner,  or  like  officer,  of  such  state  or  country,  shall 
be  received  and  accepted  by  the  commissioner  of  insurance  of  this 
state,  and  no  further  valuation  shall  be  required  or  be  made  by  him 
for  the  year  for  which  such  valuation  shall  be  so  certified,  provided 
that  the  aggregate  liability  so  determined  shall  not  be  less  than  the 
liability  resulting  from  a  valuation  made  under  the  laws  of  this  state. 

Valuation;     department  of  commerce  and   labor. 

5.  The  valuation  by  the  department  of  commerce  and  labor  of  the 
United  States,  authorized  by  any  law  thereof,  of  any  policies  of  a 
company  located  outside  of  this  state,  if  conforming  to  the  aforesaid 
provisions  as  to  valuation  by  the  commissioners  or  like  officers  of 
such  other  states  or  countries,  shall  be  received  and  accepted  in  like 
manner. 

Valuation;  commissioner  to  make. 

6.  Except  as  aforesaid  the  commissioner  of  insurance  shall  annu- 
ally make  or  cause  to  be  made  valuations  of  all  outstanding  policies, 
additions  thereto,  and  other  obligations  of  every  such  company  men- 
tioned in  subsection  1. 

Valuation;    commissioner  to  certify. 

7.  The  commissioner  of  insurance  shall,  annually,  after  the  year 
1909,  upon  the  request  of  any  domestic  company,  without  additional 
charge  or  expense  to  it,  make  one  additional  valuation  of  such  policies 
according  to  such  standard,  as  it  shall  specify.     Any  valuation  made 


1950c  124  Ch.  89 

by  him  shall,  upon  request,  be  certified  to  the  commissioner  of  insur- 
ance or  like  officer  of  any  other  state  or  country. 

Valuation;  records  of. 
8.  All  valuations  made  by  the  state  shall  be  tabulated  and  preserved 
as  a  part  of  the  records  of  the  department  of  insurance.  Each  valua- 
tion shall  be  accompanied  by  a  statement  of  the  tables  of  mortality 
used,  the  rates  of  interest  assumed,  and  the  method  of  computation 
employed. 

Section  1050  is  referred  to  in  section  liUla  (S),  1959  (22). 

Valuation;  fee. 
Section  1950a.  There  shall  be  paid  by  every  life  insurance  company 
organized  in  this  state  and  by  every  life  insurance  company  organized 
under  the  laws  of  some  other  state  or  foreign  country,  if  no  certified 
valuation  has  been  furnished  as  herein  provided,  by  way  of  compen- 
sation for  the  valuation  of  Its  policies  one  cent  on  every  one  thousand 
dollars  insured  by  it,  which  shall  be  paid  by  the  commissioner  of  in- 
si!rance  into  the  state  treasury. 

From  foreign  countries;  valuation;  deposit. 
Section  1950b.  Whenever  any  life  insurance  company,  organized 
under  the  laws  of  any  foreign  country,  shall  have  been  admitted,  it 
shall  also  be  the  duty  of  the  commissioner  of  insurance  to  annually 
and  separately  value  all  policies  written  in,  or  on,  the  lives  of  resi- 
dents of  this  state,  and  it  shall  be  the  duty  of  such  company,  as  one 
of  the  conditions  of  renewal  of  license,  to  invest,  and  at  all  times 
keep  invested,  the  aggregate  net  value  of  such  policies,  in  such  securi- 
ties as  provided  for  under  the  laws  of  this  state,  and  deposit  such  ag- 
gregate amount  in  such  securities  at  their  book  value,  with  the  state 
treasurer;  every  such  company  depositing  such  securities  shall  have 
the  right  to  receive  the  income  thereof,  and  to  exchange  the  same  from 
time  to  time  for  like  securities  of  like  value,  and  may  withdraw  such 
deposit  when  the  commissioner  of  insurance  shall  certify  that  all  lia- 
bility arising  under  all  policies  or  contracts  issued  in  or  on  the  lives 
of  residents  of  this  state  has  been  satisfied,  and  that  there  is  no 
further  necessity  for  such  deposit. 

Valuation;  mortality  table;  interest  rate. 
Se( HON  1950c.  1.  The  table  of  mortality  adopted,  if  other  than  the 
American  Experience,  the  Actuaries,  or  the  American  Experience 
Select  (on  the  basis  that  the  rate  of  mortality  during  the  first  five 
years  after  the  date  of  insurance  shall  be  calculated  according  to  the 
following  percentages  of  the  rate  shown  by  the  American  Experience 
Table  of  Mortality,  to-wit:  First  year  of  insurance  fifty  per  centum 
thereof,  second  year  of  insurance  sixty-five  per  centum  thereof,  third 
year  of  insurance  seventy-five  per  centum  thereof,  fourth  year  of  in- 
surance eighty-five  per  centum  thereof,  fifth  year  of  insurance  ninety- 
five  per  centun)  thereof,  and  for  each  year  thereafter  one  hundred  per 


Ch.  89  125  1950f 

centum  thereof),  shall  not  exhibit  at  any  age  a  lower  death  rate  than 
that  shown  at  the  corresponding  age  and  duration  by  the  British  Offices 
Select  O  (M)  Mortality  Table. 

2.  The  rate  of  interest  assumed  in  computing  premiums  and  re- 
serves shall  not  be  less  than  three,  nor  more  than  four  per  centum  per 
annum. 

Industrial   policies;     valuation;     annuities;     reserves;     exceptions. 

Section  1950d.  1.  Policies  of  industrial  insurance  on  which  the  pre- 
miums are  payable  monthly  or  oftener  shall  be  valued  to  produce  re- 
serves not  :ess  than  those  computed  on  the  "Standard  Industrial  Mor- 
tality Table"  and  the  "Substandard  Industrial  Mortality  Table"  based 
on  the  experience  of  the  Metropolitan  Life  Insurance  Company,  with 
interest  at  three  and  one-half  per  centum  per  annum. 

2:  Annuities  shall  be  valued  to  produce  reserves  not  less  than  those 
computed  on  "McClintock's  Tables  of  Mortality  Among  Annuitants," 
with  interest  at  three  and  one-half  per  centum  per  annum;  provided 
that  any  table  not  exhibiting  at  any  age  a  higher  death  rate  than  that 
shown  at  the  corresponding  age  and  duration  by  the  "British  Offices 
Annuity  Tables  1893,"  may  be  used.  Annuities  granted  in  any  policy 
of  life  insurance'  may  be  valued  in  like  manner  except  that  annuities 
deferred  for  ten  years  or  more  may  be  valued  on  the  table  of  mor- 
tality used  for  computing  the  premiums. 

Valuat^n;    disability. 

3.  The  reserve  liability  on  account  of  policies  insuring  against  ac- 
cidental death  or  disability  because  of  sickness  or  accident,  or  on' 
account  of  provisions  for  total  and  permanent  disability  insurance 
supplemental  to  or  incorporated  in  policies  of  life  or  endowment  in- 
surance, shall  be  computed  on  the  basis  of  the  "British  Friendly  So- 
ciety Table  1876  to  1880,"  with  interest  at  three  and  one-half  per 
centum  per  annum,  or  such  other  higher  standard  or  standards  as  the 
company  may  have  adopted  and  as  may  be  approved  by  the  commis- 
sioner of  insurance;  but  the  reserve  liability  for  provisions  insuring 
against  total  and  permanent  disability,  shall  be  computed  on  the  basis 
of  "Hunter's  Disability  Table,"  or  any  similar  table  approved  by  the 
commissioner  of  insurance;  provided,  that  in  no  case  shall  the  reserve 
be  less  than  the  proportional  unused  part  of  the  net  annual  premium, 
computed  as  above,  for  the  disability  benefit.  The  commissioner  may 
vary  the  standards  in  cases  where  the  use  of  such  table  is  imprac- 
ticable, and  may  also  require  additional  reserves  in  case  of  hazardous 
occupations. 

4.  This  section  shall  not  apply  to  any  policies  issued  prior  to  1907. 

American  Experience  Table. 
Section   1950f.     The  American  Experience  Table  of  Mortality  with 
Craig's  Extension  below  age  ten  is  as  follows: 


195Gf 


126 


Ch.  89 


AMERICAN  EXPERIENCE  TABLE  OP  MORTALITY 


Age 


0. 
1. 
2. 
3. 
4. 
5. 
6. 
7. 
8. 
9. 
10. 

n. 

12. 
13. 
14. 
15. 
16. 
17. 
18. 
19. 
20. 
21. 
22. 
23. 
24. 
25. 
26. 
27. 
28. 
29. 
30. 
31. 
32. 
33. 
34. 
35 
36. 
37. 
38. 
39. 
40. 
41. 
42. 
43. 
44. 
45. 
46. 
47. 
48. 
49. 
50. 
■51. 
52. 
53. 
54. 
55. 
56. 
57. 
58. 
59. 
60. 
61. 
62. 
63. 
64. 
65. 
66. 
67. 
68. 
69. 
70. 


Number  living 

at  beginning 

of  year 


143,819 
121,570 
113,851 
109,809 
107,184 
105,287 
103,855 
102,674 
101,673 
100,796 
100,000 
99,251 
98,506 
97.762 
97,022 
96,285 
95,550 
94,818 
94,089 
93,362 
92,637 
91,914 
91,192 
90,471 
89,751 
89,032 
88,314 
87,596 
86.878 
86,160 
85,441 
84,721 
84,000 
83,277 
82,551 
81.822 
81, ('90 
80,353 
79,611 
78,862 
78,106 
77,341 
76,567 
75,782 
74.985 
74,173 
73.345 
72,497 
71,627 
70,731 
69,804 
68,842 
67,841 
66,797 
65,706 
64,563 
63,364 
62,104 
60,779 
59,385 
57.917 
56,371 
54,743 
53.030 
51.230 
49.341 
47.361 
45.291 
43.133 
40.890 
38.569 


Number  dying 

within  the 

year 


22,249 

7,719 

4,042 

2,625 

1,897 

1,432 

1,181 

1,001 

877 

796 

749 

746 

743 

740 

737 

735 

732 

729 

727 

725 

723 

722 

721 

720 

719 

718 

7JS 

718 

718 

719 

720 

721 

723 

726 

729 

732 

737 

742 

749 

756 

765 

774 

785 

797 

812 

828 

818 

870 

896 

%7 

962 

1,001 

1,044 

1,091 

1,]43 

1,199 

1,260 

1,325 

1,394 

1,468 

1,546 

1,628 

1,713 

1,800 

1,889 

1,980 

2,070 

2,158 

2,243 

2,321 

2,391 


Number  dying 
during  year 
per  100,000 


15,470 
6,349 
3.550 
2,890 
1,769 
1,360 
1,137 
974 
862 
789 
749 
752 
754 
757 
760 
763 
766 
769 
773 
777 
781 
786 
791 
796 
801 
807 
813 
820 
826 
835 
843 
851 
861 
872 


909 
923 
941 
959 
979 
1,001 
1,025 
1,052 
1,083 
1,116 
1,156 
1,200 
1,251 
1,311 
1,378 
1,454 
1,539 
1,633 
1,740 
1,857 
1,989 
2,134 
2,294 
2,472 
2,669 
2,888 
3,129 
3,394 
3,687 
4,013 
4,371 
4,765 
5,200 
5,676 
6,199 


Ch.  89  127 

AMERICAN  EXPERIENCE  TABLE  OF  MORTALITT-Continued. 


1950m 


Age 


71. 
72.. 
73.. 
74.. 
75. 
76. 
77. 
78- 
79. 


Number  living'  Number  dying  Number  dymg 
at  beginning        within  the        durmg  year 
of  year  year  1     per  100,000 


178 
30 
243 
738 
237 
761 
330 
961 
670 
474 
383 
419 
603 
iSS 
,485 
193 
079 
146 
402 
847 
462 
216 
79 
21 
3 


2,448 

2,487 

2,505 

2,501 

2,476 

2,431 

2,369 

2,291 

2,196 

2,091 

1,964 

1,816 

1,648 

1,470 

1,292 

1,114 

933 

744 

555 

385 

246 

137 

58 

18 

3 


6.767 
7,373 
8,018 
8,703 
9,437 
10,231 
11,106 
12,083 
13,173 
14,447 
15,861 
17,430 
19,156 
21,136 
23,555 
26,568 
30,302 
34,669 
39,586 
45,455 
53,247 
63,426 
73,418 
85,714 
100,000 


Life  insurance  premium;     limit  of  expense  charges. 

Section  1950m.  1.  After  the  year  1907  no  foreign  life  insurance 
company  shall  issue  or  deliver  any  policy  in  this  state,  and  no  domes- 
tic life  insurance  company  shall  issue  or  deliver  any  policy,  wherein 
the  present  value  of  the  premiums  stipulated  to  be  paid  shall  exceed 
the  sum  of: 

(a)  The  net  single  premium  which  will  mature  the  policy  according 
to  its  terms  (exclusive  of  the  provisions  mentioned  in  subdivision 
(b)  ),  such  present  value  and  net  single  premium  to  be  computed  on 
the  basis  of  the  table  of  mortality  adopted  and  the  rate  of  interest 
assumed;  and 

(b)  An  amount  as  a  provision  for  expenses  and  contingencies  equal 
to  one-third  of  the  net  single  premium  on  an  ordinary  life  policy  in- 
suring the  same  sum  and  issued  at  the  same  age,  computed  according 
to  the  American  Experience  Table  of  Mortality  with  interest  at  three 
per  centum  per  annum. 

2.  The  amount  provided  for  expenses  and  contingencies,  referred 
to  in  section  1950n  as  the  "expense  charge,"  for  any  policy  year  shall 
not  exceed: 

(1)  In  the  first  year  the  sum  of  (a)  the  maximum  level  provision 
for  expenses  and  contingencies  for  such  year  permitted  for  the  policy 
in  question  under  subdivision  (b)  of  subsection  1  of  this  section,  not, 
however,  to  exceed  the  actual  level  loading  contained  in  the  premium 
on  such  policy,  (b)  the  excess,  if  any,  of  the  first  year's  premium  over 
the  largest  subsequent  annual  premium  on  the  policy,  and  (c)  the  net 
level  premium  computed  for  a  twenty  annual  premium  payment  life 


J950n  128  Ch.  89 

policy  iusuring  the  same  sum  and  issued  at  the  same  age  and  upon  the 
table  of  mortality  adopted  and  rate  of  interest  assumed,  less  the  mor- 
tality charge  computed  on  the  basis  of  no  reserve  for  such  year;  pro- 
vided, the  first  year's  expense  charge  on  any  policy,  other  than  a  term 
policy,  shall  not  exceed  the  difference  between  the  premium  and  the 
said  mortality  charge,  and  in  case  of  a  term  policy  shall  not  exceed 
the  difference  between  the  premium  and  the  mortality  charge  for  such 
year  computed  according  to  the  American  Select  Table  of  Mortality. 

(2)  In  any  one  of  the  four  succeeding  years,  one  and  one-half  times 
the  amount  which  would  be  available  under  a  level  distribution  of  the 
maximum  provision  under  subdivision  (b),  over  the  premium  paying 
period  of  the  policy,  computed  upon  the  American  Experience  Table 
of  Mortality  with  interest  at  three  per  centum  per  annum. 

(3)  In  any  year  after  the  fifth  year,  the  amount  which  would  be 
available  under  a  level  distribution  of  the  remainder  of  the  maximum 
provision  under  subdivision  (b),  over  the  premium  paying  period  of 
the  policy,  computed  upon  the  American  Experience  Table  of  Mortality 
with  interest  at  three  per  centum  per  annum. 

3.  The  foregoing  limitation  shall  not  prevent  the  addition  to  any 
premium  payable  in  installments  during. the  year  of  a  sum  not  exceed- 
ing six  per  centum  of  the  corresponding  annual  premium. 

4.  The  foregoing  expense  charges  may  be  used  irrespective  of  the 
method  of  loading  or  valuation  adopted  by  the  company. 

5.  This  section  shall  not  apply  to  policies  of  industrial  insurance. 

Section   I'jSOm   is   referred   to   in   section  1950n. 

Life  insurance  companies  to  report  expense  charges  and  expenses 
annually. 

Section  1950n.  Every  foreign  life  insurance  company  doing  busi- 
ness in  this  state  or  having  in  force  any  policies  issued  in  this  state, 
and  every  domestic  life  insurance  company,  shall,  beginning  with  the 
first  day  of  March,  1916,  and  on  the  first  day  of  March  each  year  there- 
after, make  a  report  in  writing  to  the  commissioner  of  insurance  in 
such  form  as  he  may  require,  of  the  expense  charges  and  expenses 
on  all  business  transacted  during  the  calendar  year  preceding,  exclud- 
ing industrial  business,  if  any,  stating: 

1.  For  the  first  year  of  insurance:  —  (a)  the  total  expense  charges 
provided  for  the  first  year  of  insurance  as  defined  in  section  1950m; 
and  (b)  the  actual  expenses  for  (1)  commissions  on  first  year's  pre- 
miums, (2)  advances  to  agents,  (3)  the  expenses  of  medical  examina- 
tions and  inspections  of  risks  less  the  savings  on  mortality,  and  (4) 
the  due  proportion  of  all  other  expenses,  properly  chargeable  to  first 
year's  busin«^ss,  exclusive  of  investment  expenses,  taxes,  fees  and  li- 
censes, which  said  other  expenses  shall  be  classified  to  show  separately 
agency  supervision,  home  oflUce  expenses  and  other  items;  provided, 
that  in  case  a  company  make  direct  payment  for  agency  supervision 
or  the  conduct  of  branch  offices,  or  any  part  thereof,  by  salaries  or 
otherwise  instead  of  exclusively,  by  commissions,  a  deduction  may  be 
made  from  such  other  expenses,  corresponding  to  the  smaller  renewal 


Ch.  89  129  mOr 

commissions  payable  by  such  company,  and  the  apportionment  made 
by  the  company  under  this  subsection  shall  be  final,  unless  written 
notice  of  disapproval  shall  be  given  to  the  company  by  the  commis- 
sioner of  insurance  within  sixty  days  after  the  report  is  filed. 

2.  For  the  total  business:  (c)  The  total  expense  charges  becoming 
available  during  the  calendar  year,  and  (d)  the  total  expenses,  less 
expenses  of  medical  examinations  and  inspections  of  risks  not  exceed- 
ing savings  on  mortality,  and  also  less  fees,  licenses,  taxes  and  invest- 
ment expenses. 

Section  195071  is  referred  to  in  section  1950m. 

Fi'-st  year;    expenses  not  to  exceed  expense  charges. 

Section  1950o.  No  company  mentioned  in  section  1950n,  shall  incur 
or  expend  or  permit  any  person,  firm  or  corporation  to  incur  or  expend 
on  its  behalf,  or  under  any  agreement  with  it,  during  any  calendar 
year,  for  the  purposes  specified  in  subdivision  (b),  in  section  1950n, 
an  amount  exceeding  in  the  aggregate  the  total  expense  charges  speci- 
fied in  subdivision  (a),  in  section  1950n. 

Section  1950o  is  refei~red  to  in  section  1950t. 

Total  business;    expenses  not  to  exceed  expense  charges. 

Section  1950p.  No  company  mentioned  in  section  1950n  shall  in 
any  calendar  year  make  or  incur  any  expense,  or  permit  any  expenses 
to  be  made  or  incurred  on  its  behalf  or  under  any  agreement  with  it, 
for  all  purposes  (exclusive  of  such  expenses  for  medical  examinations 
and  inspections  of  risks  as  are  actually  paid  from  the  gains  on  mor- 
tality and  of  such  investment  expenses,  taxes,  fees  and  licenses  as  are 
actually  paid  from  the  savings  on  interest  and  the  contingency  re- 
serve), in  an  amount  exceeding  in  the  aggregate  the  total  expense 
charges  specified  in  subdivision  (c)  in  section  1950n. 

Section  1950p  is  referred  to  in  section  1950t. 

Agents;    commissions  and  advances;    limitation. 

Section  1950q.  No  company  mentioned  in  section  1950n  shall  in 
any  calendar  year,  on  account  of  any  policy,  make  or  incur  any  ex. 
pense  or  permit  any  expense  to  be  made  or  incurred  on  its  behalf  or 
under  any  agreement  with  it  for  commissions  and  advances  to  agents, 
greater  than  the  expense  charge  becoming  available  on  such  policy  in 
such  calendar  year. 

Section  1950q  is  referred  to  in  section  1950t. 

Compensation  of  agents. 
Section  1950r.  No  such  company,  nor  any  person,  firm  or  corpora- 
tion on  its  behalf,  or  under  any  agreements  with  it,  shall  pay  or  allow 
to  any  agent,  broker  or  other  person,  firm  or  corporation,  for  procur- 
ing an  application  for  life  insurance,  for  collecting  any  premium 
thereon  or  for  any  other  service  performed  in  connection  thei-ewith, 
any  compensation  other  than  that  which  has  been  determined  in  ad- 
vance. 

Section  1950r  is  referred  to  in  section  1950t. 


1951  130  Ch.  89 

Bonuses  and  prizes  prohibited;  exception. 
Section  1950s.  Except  as  hereinafter  provided,  all  bonuses,  prizes 
and  rewards  and  all  increased  or  additional  commissions  or  compen- 
sations of  any  sort,  based  upon  the  volume  of  any  new  or  renewed 
business,  or  upon  the  aggregate  of  policies  written  or  paid  for,  or 
upon  any  other  contingency,  are  prohibited.  This  shall  not  prohibit 
the  institution  of  contests  or  competitions  among  agents  with  the 
awarding  of  tokens  of  small  intrinsic  value,  given  not  as  compensation 
but  as  a  bona  fide  recognition  of  merit.  A  statement  of  the  value  of 
each  such  article  or  token  of  greater  value  than  ten  dollars  and  of  the 
total  amount  expended  within  and  without  this  state  in  any  such 
competition  or  contest  shall  be  filed  with  each  annual  statement.  Any 
company  may  condition  renewal  commissions,  or  compensation  after 
the  first  insurance  year  in  whole  or  in  part  in  lieu  of  renewal  com- 
missions, upon  the  efficiency  of  service  of  the  agent  receiving  the  same, 
or  upon  the  amount  and  quality  of  the  business  renewed  under  his 
supervision,  but  in  no  case  shall  the  aggregate  sum  so  paid  in  any 
year  exceed  the  expense  limitations  imposed  by  law.  No  such  com- 
petition or  contests  shall  be  instituted,  or  any  such  conditions  imposed 
on  renewal  commissions  or  other  compensation  after  the  first  insur- 
ance year,  as  affecting  any  business  written  in  this  state,  unless  the 
plan,  with  a  full  statement  thereof,  has  first  been  filed  with  the  com- 
miss.oner  of  insurance. 

Section  1950s  is  referred  to  in  section  1950t. 

Nonparticipating  and  industrial  policies  excepted. 
Section  1950t.     Sections  1950o.  1950p,  1950q,  1950r,  and  1950s,  shall 
not  apply  to  stock  corporations,  issuing  and  representing  themselves 
as    issuing    nonparticipating    policies    exclusively,    nor    to    industrial 
policies. 

Investments,  domestic  life  companies;    other  business  prohibited. 
Section  1951.     1.  Every  life  insurance  company  organized  under  the 
laws  of  this  state  may  invest  its  assets  as  follows: 

(a)  In  the  lawfully  authorized  bonds  or  other  evidences  of  indebt- 
edness of  the  United  States  or  of  any  state  of  the  United  States,  or  of 
the  District  of  Columbia,  or  of  the  Dominion  of  Canada,  or  of  any 
province  or  city  thereof. 

(b)  In  the  lawfully  authorized  bonds  or  other  evidences  of  indebt- 
edness of  any  county,  city,  town,  village,  or  school  district;  or  of  any 
other  governmental  or  civil  division  having  a  population  of  fifty  thou- 
sand or  more,  within  the  United  States,  or  the  District  of  Columbia 
which  shall  be  a  direct  obligation  of  the  county,  city,  town,  village  or 
school  district,  or  other  governmental  or  civil  divisioii  issuing  the 
same. 

(c)  In  loans  *  *  *  secured  by  mortgages  upon  unincumbered  and 
wholly  or  partly  improved  real  property  in  any  state  of  the  United 
States,  or  in  the  District  of  Columbia,  or   *   *   *   upon  leasehold  estates 


Ch.  89  131  ^951 

in  improved  real  property  therein  for  a  term  of  fifty  years  or  more 
where  twenty-five  years  or  more  of  the  term  is  unexpired  and  where 
sucli  leasehold  estate  is  unincumbered  except  by  rentals  accruing  there- 
from to  the  owner  of  the  fee,  and  where  the  mortgagee  is  entitled  to  be 
subrogated  to  all  the  rights  *  *  *  of  the  lessee;  *  *  *  provided  that 
real  property  shall  not  be  deemed  to  be  incumbered  within  the  mean- 
ing of  this  section  by  reason  of  the  existence  of  unpaid  assessments  and 
taxes  not  delinquent,  outstanding  leaseholds,  mineral,  oil,  or  timber 
rights,  easements  or  rights  of  way  for  public  highways,  private  roads, 
railroads,  telegraph,  telephone,  electric  light  and  power  lines,  drains, 
sewers,  or  other  similar  easements  or  rights  of  way,  liens  for  service 
and  maintenance  of  loater  rights  when  not  delinquent,  party  wall 
agreements,  building  restrictions,  or  other  restrictive  covenants;  and 
provided  further  that  no  such  loan  shall  exceed  fifty  per  cent  of  the 
then  faiY  market  value  in  excess  of  existing  incumbrances  of  the  real 
property  or  leasehold  estate,  including  buildings,  if  any,  mortgaged  to 
secure  the  same;  and  provided,  further  that  *  *  *  if  the  value  of 
buildings  constitutes  any  part  of  the  security,  such  buildings  must  be 
kept  insured  to  an  amount  which,  together  with  one-half  the  value  of 
the  land,  or  the  leasehold  estate,  shall  equal  or  exceed  the  loan,  and 
the  policy  or  policies  of  insurance  thereon  be  assigned  to  and  held 
by  said  corporation  as  collateral  to  such  loan. 

(d)  In  *  *  *  bonds  or  other  evidences  of  indebtedness  of  terminal, 
belt  line,  and  railroad  companies  in  the  United  States  *  *  *  or  Can- 
Qda,  adequately  secured  by  mortgage  or  pledge  of  property  of  the  cor- 
poration issuing  them,  or  held  in  trust  for  its  use  and  benefit  and  upon 
which  no  default  in  payment  of  interest  has  *  *  *  occurred  within 
three  years  of  the  date  of  the  investment  therein,  or  since  issuance  if 
such  bonds  were  issued  less  than  three  years  prior  to  the  date  of  in- 
vestment therein. 

(e)  In  *  *  *  bonds  of  any  *  *  *  street  or  interurban  railway 
corporation,  or  corporation  engaged  in  furnishing  to  the  public  heat, 
light,  power  or  water,  operating  in  *  *  *  o  city  in  *  *  *  the  United 
States  of  not  less  than  *  *  *  twenty-five  thousand  *  *  *  inhabitants, 
which  *  *  *  bonds  are  adequately  secured  by  mortgage  upon  the 
franchises  and  property  oivned  and  used  by  such  corporation  in  its 
business  and  upon  lohich  interest  has  been  paid  for  not  less  than 
three  years  prior  to  the  date  of  investment  therein;  or  in  bonds  issued 
to  refund  the  same. 

(f)  In  the  mortgage  bonds  of  the  farm  loan  banks  authorized  under 
the  federal  farm  loan  act,  and  in  obligations  secured  by  mortgages  or 
trust  deeds  authorized  in  subdivision   (c)  of  this  section. 

(g)  In  loans  upon  collateral  security  of  any  of  the  foregoing  secur- 
ities, not  exceeding  ninety  per  cent  of  the  market  value  of  such  se- 
curities. 

(h)  In  loans  upon  the  security  of  its  own  policies  to  an  amount 
which  with  other  indebtedness  and  unpaid  installments  of  the  annual 
premium  and  interest  to  their  next  policy  anniversary  shall  not  exceed 
the  surrender  value  specified  in  the  policy. 


1952  132  Ch.  89 

(ij  In  evidences  of  indebtedness  not  hereinbefore  specifically  author- 
ized, provided  the  same  are  eligible  for  discount,  rediscount,  purchase 
or  sale  by  Federal  Reserve  banks  and  provided  further  that  such  in- 
vestments shall  not  at  any  time  exceed  one-third  of  its  unapportioned 
surplus  or  contingency  reserve  as  defined  in  section  1952a  of  th(f 
statutes,  as  shown  by  the  last  annual  statement  of  such  corporation 
filed  with  the  commissioner  of  insurance  as  provided  in  section  195.'f 
of  these  statutes,  and  that  no  such  investment  shall  be  made  by  a 
company  that  has  not  unassigned  surplus  to  the  amount  of  one  million 
dollars. 

2.  No  domestic  life  insurance  company  shall  make  *  *  *  any  in- 
vestment not  authorized  by  law;  provided,  however,  that  nothing  in 
this  *  *  *  section  shall  *  *  *  be  construed  as  prohibiting  a  com- 
pany from  taking  any  action  deemed  necessary  or  expedient  for  the 
protection  of  investments  made  by  it  or  from  accepting  in  good  faith, 
to  protect  its  interests,  securities  or  property  *  *  *  not  herein  *  *  * 
mentioned  in  payment  of  or  to  secure  debts  due  *  *  *  to  it. 

Life  insurance  investments;  amortization  valuation  authorized. 
Section  1951f.  All  bonds  or  other  evidences  of  debt  having  a  fixed 
term  and  rate  held  by  a  life  insurance  company  or  fraternal  benefit 
society  authorized  to  do  business  in  this  state  may,  if  amply  secured 
and  not  in  default  as  to  principal  and  interest,  be  valued  as  follows: 
If  purchased  at  par,  at  the  par  value;  if  purchased  above  or  below 
par,  on  the  basis  of  the  purchase  price  adjusted  so  as  to  bring  the 
value  to  par  at  maturity  and  so  as  to  yield  in  the  meantime  the  effec- 
tive rate  of  interest  at  which  the  purchase  was  made;  provided  that 
the  purchase  price  shall  in  no  case  be  taken  at  a  higher  figure  than 
the  actual  market  value  at  the  time  of  purchase;  and,  provided  further, 
that  the  commissioner  of  insurance  shall  have  full  discretion  in  de- 
termining the  method  of  calculating  values  according  to  the  foregoing 
rule,  and  the  values  found  by  him  in  accordance  with  such  method 
shall  be  final  and  binding,  provided,  also,  that  any  such  corporation 
may  return  such  bonds  or  other  evidence  of  debt  at  their  market  value 
or  their  book  value,  but  in  no  event  at  an  aggregate  value  exceeding 
the  aggregate  of  the  values  calculated  according  to  the  foregoing  rule. 

Surplus  in  mutual  life  companies. 
Section  1952.  Every  life  insurance  corporation  doing  business  in 
this  state  upon  the  principal  of  mutual  insurance,  or  the  members  of 
which  are  entitled  to  share  in  the  surplus  funds  thereof  may  make 
distribution  of  such  surplus  as  they  may  have  accumulated  annually,  or 
once  in  two,  three,  four  or  five  years  as  the  directors  thereof  may  from 
time  to  time  determine.  In  determining  the  amount  of  the  surplus  to 
be  distributed  there  shall  be  reserved  an  amount  not  less  than  the  ag- 
gregate net  value  of  all  the  outstanding  policies,  said  value  to  be  com- 
puted by  the  American  Experience  Table  of  mortality  with  interest  not 
exceeding  four  and  one-half  per  cent.     Nothing  in  this  section  shall  be 


Ch.  89  133  1952c 

construed  to  hereafter  permit  any  such  corporation  to  defer  the  dis- 
tribution, apportionment  or  accounting  of  surplus  to  policyholders  for 
a  longer  period  than  five  years,  and  on  all  policies,  hereafter  outstand- 
ing, under  the  conditions  of  which  the  actual  distribution  is  provided 
for  at  a  definite  or  fixed  period,  the  apportioned  surplus  shall  be  carried 
as  a  liability  to  the  class  of  policies  on  which  the  same  was  accumu- 
lated. 

Mutual  life  insurance  surplus  to  be  apportioned  annually  to  policies. 

Section  1952a.  Every  life  insurance  company  having  in  force  any 
policy  of  insurance  issued  or  delivered  in  this  state  upon  the  mutual 
or  participating  plan,  shall  annually,  as  of  the  thirty-first  day  of  De- 
cember, ascertain  and  determine  the  excess  of  its  assets  over  all  re- 
serve liabilities  and  all  other  liabilities  constituting  its  profits,  sav- 
ings, earnings  or  surplus,  and  also  the  amount  of  unapportioned  sur- 
plus which  it  will  retain  therefrom  as  a  contingency  reserve.  After 
setting  aside  such  unapportioned  surplus,  such  sums  as  may  be  re- 
quired for  the  payment  of  authorized  dividends  upon  the  capital  stock, 
if  any,  and  such  sums  as  may  properly  be  held  for  account  of  existing 
deferred  dividend  policies,  the  remaining  surplus  shall  be  apportioned 
equitably  to  all  other  policies  entitle^  to  share  therein. 

Section  1952  is  referred  to  in  1952c. 

Participating  policies  to  share  surplus  annually;    exceptions. 

Section  1952b.  On  all  participating  policies  of  life  insurance  here- 
tofore or  hereafter  issued  in  this  state,  excepting  policies  of  industrial 
insurance  or  of  paid-up  or  temporary  and  pure  endowment  or  other 
stipulated  form  of  insurance  issued  or  granted  in  exchange  for  lapsed 
or  surrendered  policies,  and  policies  under  the  conditions  of  which  the 
distribution  of  profits,  savings,  earnings  or  surplus  is  deferred  for  more 
than  one  year  from  the  date  of  the  policy,  and  contingent  upon  the 
policy  being  in  force  and  the  insured  living  at  the  completion  of  the 
period  for  which  such  distribution  is  deferred,  the  company  shall 
annually  ascertain  and  credit  the  share  of  each  such  policy  in  the 
profits,  savings,  earnings  or  surplus. 

Section  1952h  is  referred  to  in  1952c,  1952d. 

Surplus,  interest  and  accretions  a  separate  liability. 
Section  1952c.  1.  The  amount  of  profits,  savings,  earnings  or  sur- 
plus so  ascertained  to  be  due  to  each  such  policy,  together  with  the  in- 
terest 'earnings  and  accretions  thereto,  shall  be  carried  as  a  distinct 
and  separate  liability  to  such  policy  and  shall,  except  as  otherwise  pro- 
vided in  contracts  heretofore  issued,  be  paid  or  applied  or  be  subject  to 
be  withdrawn  in  each  policy  year,  or  be  paid  upon  the  maturity  or  termi- 
nation of  the  policy;  provided,  this  shall  not  require  the  payment  of  a 
dividend  if  none  has  accrued  upon  the  policy,  nor  if  the  policy  be 
changed  or  terminated  other  than  by  maturity  prior  to  the  policy  an- 
niversary; and  provided  further  that  if  a  dividend  is  made  payable  on 


1952f  134  Ch.  89 

an  anniversary  of  the  policy  preceding  the  third,  its  payment  may  be 
conditioned  on  the  payment  of  the  succeeding  year's  premium. 

Share  of  policies  between  distributions. 

2.  Policies  which  have  become  payable  before  the  time  when  the 
next  distribution  would  have  been  made,  and  after  the  date  of  the  last 
previous  distribution,  shall  share  in  the  same  equitably  and  propor- 
tionally. 

Annual  accounting  to  commissioner. 

3.  The  company  shall  annually,  on  or  before  the  first  day  of  March, 
after  the  year  1915,  file  with  the  commissioner  of  insurance  in  such 
form  as  he  may  require,  a  statement  verified  by  the  secretary  and 
actuary,  showing  the  amounts  respectively  of  the  unapportioned  sur- 
plus, unpaid  dividends,  deferred  dividend  surplus  mentioned  in  section 
1952a  and  other  surplus;  and  showing  fully  and  in  detail  the  method 
of  ascertainment  and  apportionment  of  profits,  savings,  earnings  or  sur- 
plus on  the  policies  within  the  provisions  of  section  1952b;  the  factors 
used  in  making  such  ascertainment  and  apportionment,  and  the  rate  of 
interest  at  which  dividends  left  to  accumulate  have  been  improved. 

Dividends;  statement  to  insured;  form. 
Section  1952d.  Not  less  than  fifteen  days  prior  to  the  date  of  dis- 
tribution of  the  dividend  on  any  annual  dividend  policy  in  any  year 
every  company  having  in  force  in  this  state  any  such  policy  shall  mail 
to  the  insured  at  his  last  known  post-office  address,  a  statement  of  the 
apportionment  of  surplus  to  such  policy  according  to  the  last  divi- 
dend ascertainment,  showing  the  total  dividend  and  policy  number, 
and  shall  upon  request  furnish  to  the  insured  a  statement  giving  the 
following  information:  (a)  policy  number,  (b)  mortality  table,  (c)  in- 
terest basis,  (d)  gains  from  interest,  mortality,  expenses  and  other 
sources  stated  separately  or  in  such  comb  nation  as  will  conform  to  the 
company's  method  of  distribution,  (e)  total  dividend  for  year,  (f)  gross 
per  cent  and  net  per  cent  interest  earned  by  company,  (g)  per  cent  mor- 
tality gain  actually  experienced  by  the  company  during  the  year,  and 
(h)  a  memorandum  of  existing  dividend  credits  or  additions;  provided, 
that  the  aforesaid  percentages  may  be  approximated  where  the  state- 
ment of  the  apportionment  of  surplus  shall  contain  the  following 
clause:  "A  statement  of  apportionment  of  dividend  in  accordance  with 
section  1952d  Wisconsin  Statutes  will  be  furnished  on  request."  This 
section  shall  not  apply  to  policies  ol"  industrial  insurance. 

Life  insurance;  deferred  surplus  to  be  annually  set  apart. 
Section  1952f.  On  all  policies  of  life  insurance  heretofore  or  here- 
after Issued  by  any  company  doing  business  in  this  state,  under  the 
conditions  of  which  the  distribution  of  profits,  savings,  earnings  or 
surplus  is  deferred  for  more  than  one  year  from  the  date  of  the  policy, 
and  contingent  upon  the  policy  being  in   force  and  the  insured  living 


Ch.  89  135  1953h 

at  the  completion  of  the  period  for  which  such  distribution  is  deferred, 
the  company  shall,  as  of  the  thirty.first  day  of  December  in  each  year, 
ascertain  and  set  apart  as  to  such  policies  as  a  class  the  amounts  of 
profits,  savings,  earnings,  or  surplus  then  accumulated  to  prov.de  for 
the  apportionment  and  distribution  agreed  upon  in  such  policy  con- 
tracts. 

Not  afterwards  diverted. 

Section  1952g.  No  part  of  the  amount  of  profits,  savings,  earniilgs 
or  surplus  so  ascertained  and  set  apart  to  such  class  of  policies  under 
section  1952f,  nor  of  the  interest  earnings  or  accretions  thereto,  shall 
be  diverted  for  dividends,  expenses  or  surplus  on  account  of  any  other 
class  or  classes  of  policies. 

Annual  accounting. 
Section  1952h.  The  company  shall,  on  or  before  the  first  day  of 
March,  in  each  year  after  the  year  1908,  file  with  the  commissioner  ot 
insurance,  a  statement  verified  by  the  secretary  and  actuary  showing 
fully  and  in  detail  the  method  of  ascertainment  of  such  profits,  sav- 
ings, earnings  or  surplus,  the  amount  accumulated  at  the  end  of  the 
preceding  year,  the  additions  thereto  during  the  year,  and  the  sources 
from  which  derived;  the  deductions,  if  any,  made  during  the  year,  and 
the  purposes  thereof,  and  the  amount  accumulated  at  the  end  of  the 
year;  and  a  statement  showing  the  number  of  such  policies  and  the 
amount  of  insurance  in  force  at  the  beginning  of  the  year,  the  number 
and  amount  respectively  issued,  revived  and  terminated  during  the 
year,  specifying  the  different  modes  of  termination,  and  the  number 
and  amount  of  such  policies  in  force  at  the  end  of  the  year. 

Deferred  dividends;    statement  to  policyholder  on  request. 

Section  19521.  Not  less  than  fifteen  days  prior  to  the  end  of  the 
dividend  period  provided  for  in  the  policy,  every  company  having  in 
force  in  this  state  any  policy  mentioned  in  section  1952f  shall  forward 
by  mail  to  the  insured  under  any  such  policy  residing  in  this  state  at 
his  last  known  post-office  address,  a  statement  showing  the  amount  of 
the  deferred  dividend  to  be  apportioned  to  the  policy,  the  date  such 
dividend  is  payable  and  the  options  available,  if  any. 

Refei~red  to  in  2637  (11). 

Life  policy  application;    holder's  demand  for  copies. 

Section  1953b.  Every  person  within  the  state  holding  a  policy  of 
insurance  issued  by  any  life  insurance  company  doing  business  in  this 
state,  shall  be  furnished  by  such  company  with  a  copy  of  the  applica- 
tion upon  which  policy  was  issued,  upon  demand  made  for  such  copy 
by  the  holder  of  such  policy  or  by  any  person  upon  whose  life  such 
policy  was  issued. 

If  such  company  wilfully  neglect  or  fail  for  thirty  days  from  the 
time  of  such  demand,  to  furnish  such  person  a  copy  of  such  applica- 


J953n  136  Cli.  89 

tion,  it  shall  be  forever  barred  from  setting  up  by  way  of  defense  to 
any  suit  on  such  policy  of  insurance,  any  error,  incorrectness,  fraud  or 
misrepresentation  of  the  person  making  the  same,  or  any  mistake 
therein;  and  such  application  shall  thereafter  be  taken  and  held,  so  far 
as  the  same  may  affect  any  claim  under  such  policy,  or  any  gain  se- 
cured thereby,  to  be  in  all  respects  true  and  correct. 

Life    insurance;     political    contributions,    statements    precedent   to 
license. 

Section  1953d.  As  a  condition  precedent  to  the  issuance  of  a  license 
to  transact  life  insurance  business  in  this  state,  every  life  insurance 
company  shall  file  M^ith  the  commissioner  of  insurance  a  statement 
verified  by  its  president  and  secretary,  setting  forth  a  schedule  show- 
ing in  detail,  the  moneys,  property  and  other  consideration  paid  or  con- 
tributed, directly  or  indirectly,  or  used  or  offered  or  agreed  to  be  paid 
in  aid  of  any  political  party,  company  or  organization,  or  for  and  in 
aid  of  any  corporation,  joint  stock  or  other  organization  organized  or 
maintained  for  political  purposes  or  for  or  in  aid  of  any  candidates  for 
political  office  or  for  nomination  for  such  office,  or  for  the  reimburse- 
ment or  indemnification  of  any  person  for  property  so  used ;  the  names 
and  addresses  of  parties,  companies  or  organizations  to  whom  paid, 
the  time,  place  and  amount  so  disbursed  or  paid,  and  that  such  dis- 
bursements have  been  truly  entered  upon  the  books  of  the  company, 
together  with  such  other  information  in  relation  thereto,  as  the  com- 
missioner of  insurance  maj'  require. 

Life  insurance;  lobbying  expenses;  statement  precedent  to  license. 
Section  1953e.  As  a  condition  precedent  to  the  issuing  of  a  license 
to  transact  life  insurance  business  in  this  state,  every  life  insurance 
company  shall  file  with  the  commissioner  of  insurance  a  statement 
verified  by  its  president  and  secretary,  setting  forth  a  schedule  show- 
ing in  detail:  (a)  the  bills  opposed  or  promoted  by  it  during  the  pre- 
ceding year;  (b)  the  state  in  which  such  legislation  was  pending;  (c) 
names  and  addresses  of  parties  engaged  as  counsel  or  othei'wise;  (d) 
the  consideration  paid  each  of  them;  (e)  and  the  expenses  of  adver- 
tising, traveling,  etc.,  and  to  whom  paid;  (f)  and  that  such  disburse- 
ments and  expenses  have  been  tnily  entered  upon  the  books  of  the 
company,  together  with  such  other  information  in  relation  thereto,  as 
the  commissioner  of  insurance  may  requii'e. 

Annual  reports;     gains  and   losses;     unlicensed  companies;     penal- 
ties. 

Section  1953n.  1.  Every  life  insurance  company  doing  business  in 
this  state,  or  having  in  force  any  policies  issued  or  delivered  therein, 
shall  on  or  before  the  first  day  of  March  in  each  year  file  in  the  office 
of  the  commissioner  of  insurance  the  annual  statement  required  by 
section  1954  and  include  as  a  part  thereof  an  exhibit  of  the  gains  and 
losses  separately  for  its  participating  and  nonparticipating  business 
and  its  ordinary  and  industrial  business,  and  separately  as  to  each  for 
the  first  year's  business  and  for  the  total  business  of  the  company; 


Ch.  89  137  1954—5 

provided,  that  this  shall  not  require  separate  statements  as  to  partici- 
pating and  nonparticipating  business  where  a  company  is  issuing  only 
participating  policies,  or  a  separate  statement  as  to  the  first  year's 
industrial  business. 

2.  Such  statement  shall  be  upon  or  in  conformity  with  blanks  pre- 
pared by  the  commissioner  in  substantially  the  form  heretofore  re- 
quired. 

3.  Where  a  separate  account  of  any  items  required  on  such  state- 
ment shall  not  be  kept  as  to  the  participating  and  nonparticipating 
or  ordinary  and  industrial  business  of  any  company,  such  statement 
shall  state  what  proportion  of  such  items  is  apportioned  to  each  kind 
of  such  business. 

4.  Such  company  shall  also  furnish  such  other  information  in  regard 
to  said  matters  as  the  commissioner  of  insurance  may  require. 

5.  Provided  that  any  such  company  theretofore  licensed  in  this  state 
but  not  licensed  therein  at  the  time,  in  lieu  of  filing  the  annual  state- 
ment required  by  subsection  1  hereof,  may  file  the  annual  statement 
required  by  the  law  in  force  in  this  state  during  the  year  preceding  the 
last  year  during  which  such  company  was  so  licensed. 

6.  Every  such  company  failing  to  file  every  such  statement  at  the 
time  required  by  law  shall  forfeit  five  hundred  dollars  and  an  addi- 
tional five  hundred  dollars  for  each  month  elapsing  thereafter  while 
such  company  shall  have  in  force  any  policies  issued  or  delivered  in 
this  state  until  such  statement  be  filed. 

7.  Every  such  company  and  every  such  officer,  agent,  or  employe 
thereof,  wilfully  making  any  false  statement  in  any  such  statement, 
shall  forfeit  five  hundred  dollars. 

Annual  reports  of  life  insurance  companies  to  commissioner;  facts 
and  items;    penalty  for  failure  or  falsity;    publication. 

Section  1954.  Every  life  insurance  company  doing  business  in  this 
state  shall  on  or  before  the  first  day  of  March  in  each  year,  file  in  the 
ofiice  of  the  commissioner  of  insurance  an  annual  statement  giving  a 
complete  and  accurate  exhibit  of  its  business  and  financial  condition 
signed  and  verified  by  the  affidavits  of  the  president  and  secretary,  or 
if  a  foreign  corporation  by  its  resident  managing  officer  in  the  United 
States,  and  covering  the  year  ending  on  the  preceding  thirty-first  day 
of  December,  and  its  business  for  that  year,  and  exhibiting  the  follow- 
ing facts  and  items: 

(1)  The  name  of  the  comnany. 

(2)  Where  located. 

(3)  When  incorporated  and  for  what  period. 

(4)  Amount  of  capital  stock  or  guaranty  fund. 

(5)  All  the  real  property  held  by  the  corporation,  the  dates  of  ac- 
quisition, the  names  of  the  vendors,  the  actual  cost,  the  value  at  which 
it  is  carried  on  the  company's  books,  the  market  value,  the  amounts 
expended  during  the  year  for  repairs  and  improvements,  the  gross  and 
net  income  from  each  parcel,  and  if  any  portion  thereof  be  occupied 


1954—24  ■     138  Ch.  89 

by  the  company  the  rental  value  thereof,  a  statement  of,  and  all  pur- 
chases and  sales  made  since  the  last  annual  statement,  with  particu- 
lars as  to  dates,  names  of  vendors  and  vendees,  and  the  considera- 
tion. 

(6)  The  amount  of  existing  loans  upon  the  security  of  real  property, 
stating  the  amount  loaned  upon  property  in  each  state  and  foreign 
country. 

(7)  The  moneys  loaned  by  the  corporation  to  any  person  other  than 
loans  upon  the  security  of  real  property  above  mentioned  and  other 
than  loans  upon  policies  the  actual  borrowers  thereof,  the  maturity  and 
rate  of  interest  of  such  loans,  the  securities  held  therefor,  and  all 
substitutions  of  securities  in  connection  therewith,  and  the  same  par- 
ticulars with  reference  to  any  loans  made  or  discharged  since  the  last 
annual  statement. 

(8)  All  other  property  owned  by  the  company  or  in  which  it  has  any 
interest  (including  all  securities,  whether  or  not  recognized  by  the  law 
as  proper  investments),  the  dates  of  acquisition,  from  whom  acquired, 
the  actual  cost,  the  value  at  which  the  property  is  carried  upon  the 
books,  the  market  value,  the  interest  or  dividends  received  thereon, 
during  the  year;  also  all  purchases  and  sales  of  property  other  than 
real  estate  made  since  the  last  annual  statement,  with  particulars  as 
to  dates,  names  of  purchasers  and  sellers,  and  the  consideration;  and 
also  the  income  received  and  outlays  made  in  connection  with  all  such 
property. 

(  9  )   Cash  in  office  and  in  bank. 

(10)  Premium  notes  and  loans  on  policies  in  force. 

(11)  Outstanding  and  deferred  premiums  on  policies  in  force. 

(12)  All  other  loans,  investments  and  property. 

(13)  All  outstanding  losses  and  policy  claims. 

(14)  All  other  liabilities  and  claims  against  the  company. 

(15)  Cash  received  for  premiums. 

(16)  Cash  received  for  interest  and  rents. 

(17)  Income  from  all  other  sources. 

(18)  Paid  for  losses  and  claims. 

(19)  Dividends  of  surplus  to  policyholders. 

(20)  Paid  for  expenses. 

(21)  All  other  expenditure. 

(22)  All  commissions  paid  to  any  persons  in  connection  with  loans 
or  purchases  or  sales  of  any  property,  and  a  statement  of  all  payments 
for  legal  expenses,  giving  particulars  as  to  date,  amounts  and  names 
and  addresses  of  payees. 

(23)  All  moneys  expended  in  connection  with  any  matter  pending 
before  any  legislative  body  or  any  officer  or  department  of  govern- 
ment, giving  particulars  as  to  dates,  amounts,  names  and  addresses  of 
payees,  the  measure  or  proceeding  in  connection  with  which  the  pay- 
ment was  made,  and  the  interest  of  the  corporation  therein. 

(24)  The  names  of  the  officers  and  directors  of  the  company,  tlu> 
proceedings  at  tho  last  annual  election,  giving  the  names  of  candidates 


Ch.  89  139  19550 

and  the  number  of  votes  cast  for  each  and  whether  in  person,  by  proxy 
or  by  mail. 

(25)  The  salary,  compensation  and  emoluments  received  by  officers, 
directors  or  employes  and  where  the  same  amounts  to  more  than  three 
thousand  dollars,  also  salary,  compensation  and  emoluments  of  three 
thousand  dollars  or  over  received  by  any  person,  firm  or  corporation, 
with  particulars  as  to  dates,  payees  and  the  authority  by  which  the 
payment  was  made;  also  all  salaries  paid  to  any  representative  either 
at  the  home  office,  or  at  any  branch  office  or  agency,  for  agency  super- 
vision, also  the  commissions  received  by  each  general  agent  stated 
separately  as  to  first  year  and  renewal  commissions,  the  amount  paid 
to  subagents,  the  amount  paid  out  in  expenses  of  the  agency  and  the 
net  compensation  of  the  general  agent. 

(26)  The  largest  balances  carried  in  each  bank  or  trust  company 
during  each  month  of  the  year. 

(27)  All  death  claims  resisted  or  compromised  during  the  year,  with 
particulars  as  to  sums  insured,  sums  paid  and  reasons  assigned  for  re- 
sisting or  compromising  the  same  in  each  case. 

(28)  The  rates  of  annual  dividends  declared  during  the  year  for  all 
plans  of  insurance  and  all  durations  and  for  ages  at  entry  twenty-five 
thirty-five,  forty-five  and  fifty-five  and  the  precise  methods  and  factors 
by  which  such  dividends  have  been  declared. 

(29)  A  statement  of  any  and  all  reserve  or  surplus  funds  held  by  the 
company  and  for  what  purpose  they  are  claimed  respectively  to  be 
held. 

(30)  Number  and  amount  of  policy  loans  and  rate  of  interest  charged 
on  such  loans. 

(31)  Number  of  policies  and  amount  of  insurance  lapsed  on  which 
loans  had  been  granted,  giving  net  value  of  policies  and  amount  of 
loans. 

(32)  Amount  separately  paid  insurance  departments  for  examination 
and  valuation  fees  and  all  other  payments,  not  including  statutory 
fees,  licenses  and  taxes  payable  to  the  various  states. 

(33)  Amount  of  statutory  fees,  licenses  and  taxes  paid  for  privilege 
of  transacting  business,  separately;  Company  licenses,  agents'  licenses, 
filing  and  department  fees,  advertising,  retaliatory  taxes,  state  taxes 
on  premiums  or  income,  local  license  or  privilege  tax. 

(34)  Number  and  amount  of  Wisconsin  policy  loans. 

(35)  Number  and  amount  of  loans  on  Wisconsin  real  estate. 

Life  insurance;    no  rate  discrimination. 

Sp:ctiotv^  19550.  1.  No  life  insurance  company  doing  business  in  this 
state  shall  make  or  permit  any  distinction  or  discrimination  in  favor  of 
individuals  between  insurants  of  the  same  class  and  equal  expectation 
of  life  in  the  amount  or  payment  of  premiums  or  rates  charged  or  in 
any  return  of  premium,  dividends  or  other  advantages. 


19550—2  140  Ch.  89 

No  contract  other  than  policy. 
2.   (a)   No  insurance  company  or  any  agent  thereof  shall  make  any 
contract  or  agreement  as  to  such  contract  other  than  as  plainly  ex- 
pressed in  the  policy  issued  pursuant  thereto. 

Rebating. 

(b)  No  insurance  company,  or  any  officer,  agent,  director  or  employe 
thereof,  doing  business  in  this  state,  shall  pay,  allow  or  give  or  offer 
to  pay,  allow  or  give,  nor  shall  any  person  receive,  any  rebate  or 
premium  payable  on  the  policy,  or  any  special  favor  or  advantage 
whatever  in  the  dividends  or  other  benefits  to  accrue  thereon,  or  any 
valuable  consideration  or  inducement  whatever  not  specified  in  the 
policy. 

Own  risk. 

(c)  No  person  shall  as  agent  receive  any  compensation  for  effecting 
insurance  upon  his  own  property,  life  or  other  risk,  unless  during  the 
twelve  months  preceding,  as  the  agent  for  the  company  assuming  such 
risk,  he  shall  have  effected  other  insurance  therein,  the  premium  on 
which  shall  exceed  the  premium  on  the  insurance  so  effected  on  his 
own  risk. 

Exceptions. 

(d)  Neither  this  section,  sections  1919a,  1976,  nor  any  other  law  of 
this  state,  shall  prevent  the  payment  of  the  whole  or  any  part  of  any 
commission  to  a  domestic  corporation,  of  which  the  agent  writing  the 
insurance  shall  be  an  officer  or  salaried  employe,  except  that  no 
commission  shall  be  so  paid  where  any  officer  or  stockholder  of 
such  corporation  shall  be  interested  in  the  property  or  risk,  the  in- 
surance on  which  produces  such  commission,  otherwise  than  as  an 
agent  authorized  under  section  1976,  nor  shall  the  corporation  of  which 
such  agent  is  an  officer  or  salaried  employe  be  prohibited  by  law  from 
collecting  and  remitting  premiums  and  keeping  account  thereof,  pro- 
vided, however,  that  every  such  corporation  other  than  those  required 
to  report  to  some  other  state  department  shall  on  or  before  the 
twentieth  day  of  February  of  each  year,  report  in  writing  to  the  com- 
missioner of  insurance  the  amount  of  insurance  premiums  on  which 
such  commission  is  produced,  and  the  names  of  the  officers  and  em- 
ployes licensed  as  insurance  agents. 

Division  of  commissions. 

(e)  Any  agent  may  pay  the  whole  or  any  part  of  his  commissions 
to: 

(1)  An  agent,  other  than  a  life  agent,  holding  a  certificate  of  author- 
ity under  section  1976  for  writing  the  kind  of  insurance  for  which  such 
commissions  are  paid. 


Ch.  89  141  19550—3 

(2)  A  nonresident  insurance  agent,  or  any  insurance  company  author- 
ized in  this  state,  as  to  insurance  upon  property  owned  by  nonresidents 
or  located  wholly  outside  of  this  state. 

(3)  A  nonresident  agent  of  the  fidelity  or  surety  company  paying 
such  commissions.  Except  as  aforesaid,  no  agent  shall  pay  the  whole 
or  any  part  of  the  commissions  upon  any  policy  to  any  other  person. 

Dividends;    schedules. 

(f)  Provided,  that  any  company  may  make  distribution  of  savings, 
earnings  or  surplus  to  any  class  of  policyholders,  without  having  speci- 
fied such  dividends  or  distribution  in  the  policy,  where  a  schedule  is 
first  filed  with  the  commissioner  of  insurance. 

.Assistance  to  reduce  risk  not  rebate. 
(h)   Provided,  that  the  furnishing  of  information,  advice  or  service 
by  any  company,  officer,  agent,  director  or  employe  thereof,  with  re- 
gard to  any  risk  or  for  the  purpose  of  reducing  the  loss  or  liability  to 
loss,  shall  not  be  a  violation  of  this  section. 

Deferred  payment  of  first  premium. 

(i)  The  extension  of  credit  to  the  insured  upon  a  premium  without 
interest  for  not  exceeding  sixty  days  from  the  time  the  insurance  is 
written,  or  thereafter  with  interest  at  not  less  than  the  legal  rate,  as 
agreed  upon  in  writing,  shall  not  be  a  violation  of  this  section. 

Deductions  for  service  on  advisory  board  and  contracts  for  sale  ot 
stock  prohibited. 

3.  No  insurance  company  or  any  agent  thereof  shall  at  the  time  of 
soliciting  insurance  or  issuing  a  policy,  or  at  any  time  in  consideration 
of  or  in  connection  with  a  policy  issued  or  proposed  to  be  issued,  make 
or  offer  to  make  any  contract  or  agreement  whatever  for  any  deduction 
from  any  premium  or  any  addition  to  any  dividend  or  other  benefit 
whatever,  on  account  of  services  rendered  or  to  be  rendered  by  the 
applicant  for  the  policy  or  any  person  interested  therein,  either  as  an 
advisor  of  the  company  or  as  a  member  of  an  advisory  or  similar  board 
or  body  or  in  any  other  capacity  or  manner  whatever;  nor  contract 
for,  sell  or  offer  for  sale  any  stock  of  such  insurance  company  or  any 
stocks,  bonds  or  other  certificates  representing  any  interest  or  prop- 
erty in  any  organized  company  or  corporation  which  shall  at  the  time 
be  under  any  contract  or  agreement  whatever  with  such  insurance 
company,  or  own  or  control  any  of  the  stock  thereof,  or  in  any  case 
where  any  part  of  the  stocks,  bonds  or  certificates  of  indebtedness  of 
such  company  or  corporation  shall  be  owned  or  held  by  such  insurance 
company.  No  person  shall  so  contract  with  any  such  company  or  agen1 
thereof,  or  receive  any  such  favor,  privilege  or  advantage  whatever 
within  the  meaning  of  this  section. 


19550  142  Ch.  89 

Policy  void  in  proportion  to  rebate. 

4.  (a)  Notwithstanding  any  violation  of' this  section  the  policy  shall 
be  valid,  but  the  insured,  having  knowingly  and  wilfully  violated  any 
provision  of  this  section,  shall  be  entitled  to  recover  from  the  company 
only  such  proportion  of  the  amount  otherwise  payable  under  the  policy 
or  contract  of  insurance  as  the  amount  of  the  premium  or  premiums 
which  have  become  payable,  according  to  the  terms  of  the  poLcy,  de- 
ducting any  rebate  and  the  value  of  any  special  favor  or  advantage  or 
consideration  or  inducement  in  violation  of  this  section,  bears  to  the 
amount  of  such  premium  or  premiums. 

Penalty. 

(b)  Any  company,  officer,  director,  agent  or  employe  thereof  violat- 
ing this  section  and  any  other  person  knowingly  and  wilfully  violating 
this  section  shall  be  punished  by  a  fine  of  not  less  than  fifty  dollars  nor 
more  than  three  hundred  dollars,  or  by  imprisonment  in  the  county 
Jail  for  a  term  not  exceeding  six  months,  or  by  both  such  fine  and  im- 
prisonment. 

License,  revocation. 

5.  Whenever  it  shall  appear  to  the  satisfaction  of  the  commissioner 
of  insurance  after  a  hearing  before  him  upon  notice,  that  any  company, 
officer,  agent,  subagent,  helper's  agent,  broker  or  solicitor  has  violated 
any  provision  of  this  section,  he  shall  revoke  the  license  of  any  such 
company  or  person  to  transact  business  in  this  state,  and  no  other 
license  shall  be  issued  to  any  such  company  or  person  within  three 
years  after  such  revocation. 

Effect  of  revocation. 
5m.  The  commissioner  of  insurance  may  in  his  order  of  revocation 
of  the  license  of  any  officer,  agent,  subagent,  helper's  agent,  broker  or 
solicitor  fix  a  less  time  than  said  three  years,  but  not  less  than  six 
months  after  such  revocation  for  the  withholding  of  any  license  from 
such  person. 

Commissioner's  demand  for  forms;    service  response,  forfeit. 

6.  Any  such  corporation,  company,  officer  or  agent  of  such  corpora- 
tion or  company  shall,  upon  demand  in  writing  by  the  commissioner 
of  insurance,  furnish  said  commissioner  with  the  form  or  forms  of  all 
Insurance  policies,  the  form  or  forms  of  all  contracts  for  insurance  and 
the  form  or  forms  of  any  other  paper  or  papers  pertaining  to  any  con. 
tract  of  insurance  or  the  maintenance  of  the  same,  issued  or  used  or 
authorized  to  be  issued  or  used  by  said  corporation  or  company  or  by 
its  agents  or  representatives  in  or  about  the  business  of  life  insurance 
carried  on  by  said  corporation  or  company.  Upon  the  failure  on  the 
part  of  such  corporation  or  company  or  its  agents  or  representatives 
to  fully  comply  with  such  demand,  within  a  period  of  fifteen  days  after 
the  service  of  the  same,  the  commissioner  shall  forthwith  revoke  the 


Ch.  89  143  19550-5 

authority  of  siichi  corporation  or  company,  or  the  license  of  such  agent 
to  do  business  in  this  state.  Service  of  such  demand  upon  an  agent  of 
such  corporation  or  company  within  this  state,  or  a  deposit  of  the 
same  registered  and  addressed  to  the  home  office  of  such  corporation 
or  company  shall  be  sufficient  service. 

Self-criminating  plea;    no  excuse  from  testifying. 

7.  No  person,  officer  or  agent  of  any  corporation  within  the  purview 
of  this  act  shall  be  excused  from  attendance,  testifying  or  producing 
books,  papers,  contracts,  agreements  or  documents  or  privileged  from 
testifying  in  relation  to  anything  herein  prohibited  before  the  com- 
missioner of  insurance  or  any  court,  or  in  obedience  to  the  subpoena 
of  any  court  having  jurisdiction  of  the  offense  herein  prohibited,  on 
the  ground  or  for  the  reason  that  the  testimony  or  evidence,  documen- 
tary or  otherwise  required  of  him,  may  tend  to  criminate  him  or  sub- 
ject him  to  a  penalty  or  forfeiture. 

No  liability  save  for  perjury. 

8.  But  no  person  shall  be  liable  in  any  suit  or  prosecution,  civil  or 
criminal,  for  or  on  account  of  any  transaction,  matter  or  thing  concern- 
ing which  he  may  testify  or  produce  evidence,  documentary  or  other- 
wise before  said  commission  or  said  court,  or  in  obedience  to  the 
subpoena  of  said  court  or  the  demand  of  said  commissioner  or  in  any 
such  case  or  procedure;  provided  that  no  person  so  testifying  or  pro- 
ducing such  books,  papers,  contracts,  agreements  or  documents  shall  be 
exempt  from  prosecution  and  punishment  for  perjury  committed  in  so 
testifying. 

Evidence. 

9.  No  evidence  of  any  violation  of  the  provisions  of  this  section  shall 
be  received  in  any  action  brought  against  the  company  upon  any 
policy  after  the  death  of  the  insured. 

Penalty  for  violation  of  insurance  laws. 

Section  1955o — 5.  Any  corporation  violating  any  of  the  provisions 
of  the  laws  of  this  state  relating  to  insurance  shall,  where  no  other 
penalty  is  prescribed,  be  punished  by  a  fine  of  not  more  than  five  thou- 
sand dollars  and  any  person  violating  any  of  the  provisions  of  the  laws 
of  this  state  relating  to  insurance  shall,  where  no  other  penalty  is  pre- 
scribed, be  punished  by  a  fine  of  not  more  than  one  thousand  dollars, 
or  by  imprisonment  in  the  county  jail  not  exceeding  one  year,  or  by 
both  such  fine  and  imprisonment. 


1955y—2  144  Ch.  89 

ASSESSMENT  LIFE  INSURANCE 
New  assessment  life  companies  not  admitted;     valuations. 

Section  1955y — 1.  1.  No  life  insurance  company  or  association,  other 
than  fraternal  beneficiary  associations,  which  issue  contracts,  the  per- 
formance of  which  is  contingent  upon  the  payment  or  assessments  or 
calls  made  upon  its  members,  shall  do  business  within  this  state  except 
such  companies  or  associations  as  are  now  authorized  to  do  business 
within  this  state  and  which  shall  value  their  assessment  policies  or 
certificates  of  membership  as  yearly  renewal  term  policies  according 
to  the  standard  valuation  of  life  insurance  policies  precribed  by  the 
laws  of  this  state. 

Valuation. 

2.  (a)  Provided,  that  where  the  stipulated  premium  or  periodical 
call  upon  the  members  of  any  domestic  or  foreign  company  shall  ex- 
ceed the  net  one-year  term  premium  according  to  the  mortality  table 
used  in  computing  or  establishing  said  premiums  or  periodical  calls, 
or  the  American  Experience  Mortality  Table,  if  none  has  been  used, 
and  interest  at  a  rate  not  exceeding  four  per  cent  per  annum,  the  mem- 
bers shall  be  credited  with  the  premiums  paid,  together  with  interest 
thereon,  at  such  rate,  as  nearly  as  may  be  practicable,  as  the  company 
may  have  earned  from  year  to  year,  less  the  policyholder's  share  of 
losses  and  expenses. 

(b)  Said  losses  shall  be  actuarially  computed  in  accordance  with  the 
mortality  table  used  in  computing  the  premium  rates  as  aforesaid,  with 
due  allowance  for  any  savings  on  account  of  favorable  mortality  ex- 
perience. 

(c)  The  values  or  equities  so  determined  shall  be  carried  to  the 
credit  of  the  individual  members,  and  in  case  of  lapse  of  any  policy 
hereafter  issued  in  this  state,  the  amount  shall  be  applied  as  a  net 
single  premium  to  purchase  extended  insurance  for  a  term  computed 
upon  the  table  of  mortality  and  rate  of  interest  aforesaid. 

Reserve. 

3.  Every  such  company  shall  hold  assets  sufficient  to  meet  its  lia- 
bilities on  account  of  all  values  of  policies  as  ascertained  under  this 
section,  in  addition  to  all  other  liabilities. 

Statement  to  policyholders. 

4.  A  statement  of  the  credits  to  any  policyholders  shall,  after  the 
year  1911,  be  furnished  to  any  such  policyholder  upon  request. 

Reincorporation  as  legal  reserve  companies;    valuation  of  policies. 
Section  1955y — 2.     1.  Any  existing  domestic  assessment  company  or 
association  may,   with  the  written  consent  of  the  insurance  commis- 
sioner of  this  state,  upon  a  majority  vote  of  its  trustees  or  directors. 


Ch.  89  .  145  1955-22 

amend  its  articles  of  incorporation  and  by-laws  in  such  manner  as  to 
transform  itself  into  a  legal  reserve  or  level  premium  company,  and 
upon  so  doing  and  upon  procuring  from  the  insurance  commissioner  a 
certificate  of  authority,  as  provided  by  law  to  transact  business  in  this 
state  as  a  legal  reserve  or  level  premium  company,  shall  incur  the  ob- 
ligations  and  enjoy  the  benefits  thereof,  the  same  as  though  originally 
thus  incorporated,  and  such  corporation,  under  its  charter  as  thus 
amended,  shall  be  a  continuation  of  such  original  corporation,  and  the 
officers  thereof  shall  serve  through  their  respective  terms  as  provided 
in  the  original  charter,  but  their  successors  shall  be  elected  and  serve 
as  in  such  amended  articles  provided;  but  such  amendment  or  rein- 
corporation shall  not  affect  existing  suits,  rights  or  contracts. 

2.  Any  assessment  company  reincorporated  to  transact  life  insurance 
business,  shall  value  its  assessment  policies  or  certificates  as  yearly 
renewable  term  policies  according  to  the  standard  of  valuation  of  life 
insurance  policies  prescribed  by  the  laws  of  this  state. 

Section  1955y— 3.  (a)  Assessment  health  and  accident  associations 
may  be  incorporated  as  provided  in  sections  1896  to  1901,  inclusive. 

(b)  Before  such  association  shall  be  licensed  to  transact  business  at 
least  five  hundred  persons  shall  have  made  application  in  writing  for 
membership  in  such  proposed  association  and  shall  each  have  deposited 
the  premium  for  one  year  of  insurance. 

(c)  No  such  association  shall  be  formed  for  the  purpose  of  engaging 
in  any  other  kind  of  insurance  than  that  specified  in  subdivision  (4) 
of  section  1897. 

(d)  Every  policy  or  certificate  issued  by  any  corporation  or  associa- 
tion transacting  business  under  this  section  shall  have  conspicuously 
printed  on  the  face  of  such  policy  or  certificate  the  words  "assessment 
system." 


REINSURANCE;     DOMESTIC   LIFE,   ACCIDENT  OR   HEALTH   COM- 
PANIES, AND  FRATERNAL   BENEFIT  SOCIETIES 

Scope  of  enactment. 

Section  1955 — 21.  No  company  organized  under  the  laws  of  this 
state  to  do  the  business  of  life,  accident  or  health  insurance,  either  on 
the  stock,  mutual  stipulated  premium,  assessment,  or  fraternal  plan, 
shall  consolidate  with  any  other  company,  or  reinsure  its  risks,  or  any 
part  thereof  with  any  other  company,  or  assume  or  reinsure  the  whole 
of,  or  any  portion  of  the  risks  of  any  other  company,  except  as  herein- 
after provided;  but  nothing  herein  contained  shall  prevent  any  such 
company,  organized  on  the  stock  or  mutual  plan,  from  reinsuring  a 
fractional  part  of  any  single  risk. 

See  section  1914a. 

Petition  to  commissioner. 

Section  1955 — 22.  When  any  such  company  shall  propose  to  consoli- 
date with  any  other  company,  or  to  enter  into  any  contract  of  reinsur- 

10 


1955—24  146  •  Ch.  89 

ance,  it  shall  present  its  petition  to  the  commissioner  of  insurance  of 
this  state,  setting  forth  the  terms  and  condit.ons  of  such  proposed  con- 
solidation or  reinsurance,  and  praying  for  the  approval  or  of  any  modi- 
fication thereof,  which  the  commission  hereinafter  provided  for  may 
approve. 

Section  J955 — 22  is  referred,  to  in  1908m,  1955 — 2Sm. 

Notice  to  policyholders. 
Section  1955 — 23.  The  commissioner  of  insurance  shall  thereupon 
issue  an  order,  requiring  notice  to  be  given  by  mail  to  each  policy- 
holder of  such  company,  of  such  petition,  and  the  time  and  place  at 
which  hearing  thereon  will  be  held,  and  shall  publish  the  said  notice  in 
at  least  two  newspapers,  once  in  each  week,  for  at  least  two  weeks  be- 
fore the  time  appointed  for  the  hearing  upon  said  petition. 

Reinsurance;    disability  company;    notice;    hearing. 

Section  1955 — 23m.  In  lieu  of  proceeding  under  sections  1955 — 22 
and  1955 — 23,  any  accident  or  health  company,  may  consolidate  and 
enter  into  a  contract  of  reinsurance  with  any  other  company  by  filing 
with  the  commissioner  of  insurance  a  copy  of  such  contract  and  all 
papers  relating  thereto,  which  consolidation  and  reinsurance  shall  take 
effect  upon  such  filing  and  the  mailing  to  each  person  hold.ng  a  policy 
so  reinsured  a  notice  thereof.  Provided,  that  if  the  holders  of  not  less 
than  five  per  cent  of  such  policies  so  reinsured  shall  within  thirty  days 
thereafter  file  a  petition  with  the  commissioner  of  insurance  for  a  hear- 
ing on  the  question  of  such  reinsurance,  the  commissioner  shall,  and 
without  such  petition  may,  order  a  hearing  as  provided  in  section  1955 
— 24,  notice  of  which  shall  be  given  by  the  company  by  mail  to  each 
holder  of  such  policy,  so  reinsured  at  least  ten  days  before  such  hear- 
ing, and  thereupon  proceedings  shall  be  had  as  provided  in  sections 
1955—24  and  1955—25. 

Section  1955 — 23m  is  referred  to  in  section  19087n,  1955 — 25. 

Commission  to  hear  petition. 
Section  1955 — 24.  The  governor,  or  in  event  of  his  inability  to  act, 
some  competent  person  resident  of  the  state  to  be  appointed  by  him, 
the  attorney-general,  and  the  commissioner  of  insurance  of  the  state, 
shall  constitute  a  commission  to  hear  and  determine  upon  said  petition. 
At  the  time  and  place  fixed  in  said  notice,  or  at  such  time  and  place 
as  shall  be  fixed  by  adjournment,  the  commission  shall  proceed  with 
the  hearing,  and  may  make  or  order  such  examination  into  the  affairs 
and  condition  of  said  company  as  it  may  deem  proper.  The  commis- 
sioner of  insurance  shall  have  the  power  to  summon  and  compel  the 
attendance  and  testimony  of  witnesses  and  the  production  of  books  and 
papers  before  said  commission.  Any  policyholder  or  stockholder  of 
the  company  or  companies  so  petitioning  may  appear  before  said  com- 
mission and  be  heard  in  reference  to  said  consolidation  or  reinsurance. 
Said  commission,  if  satisfied  that  the  interest  of  the  policyholders  of 
such  company  or  companies  are  properly  protected,  and  that  no  reason- 


oil.  S9  147  1956 

able  objection  exists  thereto,  may  approve  and  authorize  the  proposed 
consolidation  or  reinsurance,  or  may  modify  or  change  the  terms  and 
conditions  thereof  as  may  seem  best  for  the  interests  of  the  policy- 
holders, and  said  commission  may  make  such  order  with  reference  to 
the  distribution  and  disposition  of  the  surplus  assets  of  any  such  com- 
pany thereafter  remaining,  as  shall  be  just  and  equitable  to  the  policy- 
holders. Such  consolidation  or  reinsurance  shall  only  be  approved  by 
the  consent  of  all  the  members  of  said  commission,  and  it  shall  be  the 
duty  of  said  commission  to  guard  the  interests  of  the  policyholders  of 
any  such  company  or  companies  proposing  to  consolidate  or  reinsure. 
Section  1955 — 2i  is  refei-red  to  in  section  1955 — 23in. 

Expenses;  compensation  prohibited. 
Section  1955 — 25.  All  actual  expenses  and  costs  incident  to  pro- 
ceedings under  the  provisions  of  this  act  shall  be  paid  by  the  company 
or  companies  bringing  said  petition,  or  effecting  such  reinsurance,  and 
an  itemized  statement  of  the  expenses  and  costs  shall  be  filed  in  the 
department  of  insurance  with  a  certified  copy  of  the  decision  of  the 
commission.  Provided,  that  in  the  discretion  of  the  commission  the 
petitioners  under  section  1955— 23m  may  be  ordered  to  pay  all  or  a 
part  of  such  expenses  and  costs.  No  officer  of  any  such  company  or 
companies,  except  as  fully  expressed  in  the  contract  of  reinsurance,  and 
no  member  of  said  commission,  or  employe  of  the  state,  shall  receive 
any  compensation,  gratuity  or  otherwise,  directly  or  indirectly  for  in 
any  manner  aiding,  promoting  or  assisting  in  such  consolidation  or 
reinsurance. 

Section  1955 — 25  is  referred  to  in  section  1908m,  1955 — 23m. 

Penalty. 

Section  1955—26.  Any  officer,  director  or  stockholder  of  any  such 
company  or  companies,  or  any  member  of  such  commission  or  employe 
of  the  state,  violating  or  consenting  to  the  violation  of  the  provisions 
of  this  act  shall  be  punished  by  a  fine  of  not  less  than  ten  thousand 
dollars  and  by  imprisonment  for  not  less  than  one  year,  nor  more  than 
ten  years. 

Section  1955 — 26  is  referred  to  in  190Sm. 

FRATERNAL  OR  IVIUTUAL  BENEFIT  SOCIETIES 
Definition. 
Section  1956.  1.  Any  corporation,  society,  order  or  voluntary  as- 
sociation, without  capital  stock,  organized  and  carried  on  solely  for 
the  mutual  benefit  of  its  members  or  their  beneficiaries,  and  having  a 
lodge  system  with  ritualistic  form  of  work  and  representative  form 
of  government,  and  which  makes  provision  for  the  payment  of  death 
or  disability  benefits,  or  for  both,  is  hereby  declared  to  be  a  "fraternal 
benefit  society,"  which  shall  be  held  to  be  synonymous  with  a  "mutual 
benefit  society."  Domestic  societies  licensed  to  do  business  in  this 
state  as  fraternal  benefit  societies  on  the  first  day  of  May,  1911.  shall 
be  considered  within  this  subsection. 

Section  1956  i.s  referred  to  in  sec.   1958  (15). 


1956—5  148  Ch.  89 

Lodge  system   defined. 

2.  Any  such  society  having  a  supreme  governing  or  legislative  body, 
and  subordinate  lodges  or  branches  by  whatever  name  known,  into 
which  members  shall  be  elected,  initiated,  and  admitted  in  accord- 
ance with  its  constitution,  laws,  rules,  regulations,  and  prescribed 
ritualistic  ceremonies,  which  subordinate  lodges  or  branches  shall  be 
required  by  the  laws  of  such  society  to  hold  regular  or  stated  meet- 
ings at  least  once  in  each  month,  shall  be  deemed  to  be  operating  on 
the  lodge  system. 

Representative  form  of  government. 

3.  (a)  Any  such  society  shall  be  deemed  to  have  a  representative 
form  of  government  when  it  shall  provide  in  its  constitution  and  laws 
for  a  supreme  legislative  or  governing  body,  composed  of  representa- 
tives elected  either  by  the  members  or  by  delegates  elected  directly  or 
indirectly  by  the  members,  together  with  such  other  members  as  may- 
be prescribed  by  its  constitution  and  laws:  (1)  Provided  that  the  elec- 
tive members  shall  constitute  a  majority  in  number,  and  have  not  less 
than  two-thirds  of  the  votes  nor  less  than  the  votes  required  to  amend 
its  constitution  and  laws;  and  (2)  Provided,  further,  that  the  meeting 
of  the  supreme  or  governing  body  and  the  election  of  officers,  repre- 
sentatives, or  delegates  shall  be  held  as  often  as  once  in  four  years. 

(b)  The  members,  officers,  representatives,  or  delegates  of  a  frater- 
nal benefit  society  shall  not  vote  by  proxy. 

(c)  Provision  may  be  made  for  voting  by  mail. 

Associations  and  orders  excepted, 

4.  Unless  express  reference  is  made  to  this  subsection,  no  law  now 
in  force  or  hereby  or  hereafter  enacted  shall  include  or  apply  to: 

(a)  Societies  which  limit  their  membership  to  any  one  hazardous 
occupation. 

(b)  Nor  to  an  association  of  local  lodges  of  a  society  now  doing 
business  in  this  state  which  provides:  (1)  death  benefits  not  exceeding 
three  hundred  dollars  to  any  one  person;  (2)  disability  benefits  not 
exceeding  three  hundred  dollars  in  any  one  year  to  any  one  person; 
(3)  or  both. 

(c)  Nor  to  any  contracts   of  reinsurance  business  on  such  plan   in 

this  state. 

(d)  Nor  to  domestic  societies  which  limit  their  membership  to  the 
employes  of:  (1)  a  particular  city  or  town;  (2)  a  designated  firm, 
business  house,  or  corporation. 

(e)  Nor  to  domestic  lodges,  orders,  or  associations  of  a  purely-  re- 
ligious, charitable,  and  benevolent  description,  which  do  not  provide: 
(1)  for  a  death  benefit  of  more  than  one  hundred  dollars;  (2)  or  for 
disability  benefits  of  more  than  one  hundred  and  fifty  dollars  to  any 
one  person  in  any  one  year. 

5.  But,  (a)  any  such  order  or  society  which,  (1)  has  more  than  five 
hundred  members,   (2)   and  provides  for  death  or  disability  benefits; 


Ch.  89 


149 


195', 


(b)  and  any  such  lodge,  order,  or  society  which  issues  to  any  person 
a  certificate  providing  for  the  payment  of  benefits;  shall  not  be  exempt 
by  the  provision  of  this  section,  but  shall  comply  with  all  the  require- 
ments of  the  law  relating  to  fraternal  benefit  societies. 

Commissioner  may  require  information. 
6    The    commissioner    of   insurance    may   require   from    any    socie  y 
such  information  as  will  enable  him  to  determine  whether  such  society 
is  exempt  from  the  provisions  of  the  laws  relating  to  insurance  or  to 
fraternal  benefit  societies. 

Accident  societies.  . 

8  Any  fraternal  benefit  society,  heretofore  organized  and  mcorpor- 
porated  and  operating  within  the  definition  set  forth  in  -^^1^^^^^^}' 
2  and  3  of  this  section,  (a)  providing  for  benefits  m  case  of  death 
o'r  disability  resulting  solely  from  accidents,  (b)  but  which  does  no 
obligate  itself  to  pay  death  or  sick  benefits,  may  be  licensed  under  the 
provisions  of  the  law  relating  to  fraternal  benefit  societies  and  shall 
have  all  the  privileges  and  shall  be  subject  to  all  the  provisions  and 
regulations  of  such  law,  except  that  the  provisions  of  such  law  requir- 
ing medical  examinations,  valuations  of  benefit  certificates,  and  that 
the  certificate  shall  specify  the  amount  of  benefits,  shall  not  apply  to 
such  society. 

Exemption  from   general   laws. 

9  Unless  express  reference  is  made  to  this  subsection  or  unless  ex- 
pressly designated  therein,  no  law  now  in  force  or  hereafter  enacted, 
shall  apply  to  any  fraternal  benefit  society  or  mutual  benefit  society. 

Definitions. 

10  The  word  "assessment,"  as  used  in  any  law  applicable  to  any 
fraternal  benefit  society,  shall  mean  that  the  usual  method  employed 
by  any  organization  within  such  provisions  to  meet  its  death  losses 
is  by  assessments  upon  its  surviving  members,  or  that  the  amount 
estimated  or  required  to  meet  such  losses  shall  not  be  limited  to  a 
fixed  sum.  The  word  "organization,"  as  so  used,  shall  mean  all  such 
fraternal  benefit  societies. 

Memberships,  age  limits,  medical  examination. 
Section    1957      3    (a)  No    fraternal   benefit    society   shall   admit   to 
beneficial  membership  any  person  less  than  sixteen  or  more  than  sixty 

years  of  age. 

(b)  Nor  until  he  has  been  examined  by  a  legally  qualified  physician 
and  such  examination  has  been  supervised  and  approved  in  accordance 
with  the  laws  of  the  society. 

(c)  Any  person  who  shall  apply  for  a  certificate  providing  for  dis- 
ability benefits  only,  need  not  be  required  to  pass  a  medical  examina- 
tion  therefor. 


7.955  150  Ch.  89 

(d)  General  or  social  members  may  be  accepted  at  other  ages  than 
herein  specified. 

See  section  19S8  (IS J. 

Beneficiaries. 
5.  Any  member  of  such  society,  order  or  association  may  name  as 
his  beneficiary  any  person  or  persons  natural  or  artificial  permitted 
by  the  laws  of  such  society,  order  or  association  or  if  the  laws 
thereof  permit,  his  insurance  may  be  made  payable  to  his  estate.  Any 
member  may  change  the  beneficiary  named  in  his  certificate  or  policy 
without  the  consent  of  such  beneficiary,  by  complying  with  the  by-laws 
of  the  society,  order  or  association  which  issued  the  same. 

Deferred  dividends  prohibited. 
5m.  No  fraternal  benefit  society  doing  business  in  this  state  shall 
enter  into  or  issue  any  certificate,  policy,  or  other  contract  in  this 
state  in  which  the  accounting,  apportionment,  and  distribution  of  any 
profits,  savings,  earnings,  or  surplus,  or  surplus  shall  be  deferred  for  a 
longer  period  than  one  year. 

Investments,  home  office. 

10.  Every  society  shall  invest  its  funds  only  in  securities  permitted 
by  the  laws  of  this  state  for  the  investment  of  the  assets  of  life  in- 
surance companies;  provided  that  any  foreign  society  permitted  or 
seeking  to  do  business  in  this  state,  which  invests  its  funds  in  ac- 
cordance with  the  laws  of  the  state  in  which  it  is  incorporated,  shall 
be  held  to  meet  the  requirements  of  this  act  for  the  investment  of 
funds;  and  provided  that  a  part  thereof,  not  exceeding  twenty  per 
centum  of  its  assets,  may  be  invested  in  a  building  for  use  and  occu- 
pancy by  the  society  as  its  home  office. 

Expenses  limited  to  stated  purposes. 

11.  (a)  Every  provision  of  the  laws  of  a  fraternal  benefit  society  for 
payment  by  members  of  such  society,  in  whatever  form  made,  shall 
distinct.y  state  the  purpose  of  the  same  and  the  proportion  thereof 
which  may  be  used  for  expenses. 

(b)  No  part  of  the  money  collected  for  mortuary  or  disability  pur- 
poses, or  to  mature  the  policies,  or  of  the  net  accretions  thereto,  shall 
be  used  for  expenses. 

(c)  Savings  on  mortality  may  be  used  to  pay  the  expenses  of  med- 
ical examinations  and  inspections  of  risks. 

(d)  Investment  expenses  may  be  paid  from  gains  on  interest. 

Fraternal  benefit  society,  organization. 

Section  1958.  1.  (a)  Fraternal  beneficiary  or  mutual  benefit  so- 
cieties may  be  incorporated  as  provided  in  sections  1S96  to  1901m, 
inclusive. 

(b)  Before  such  society  shall  be  licensed  to  transact  business  at 
least  five  hundred  persons  shall  have  made  application  in  writing  for 
membership  in  such  proposed  corporation. 


Ch.  S9 


151 


1958—2 


(c)  In  case  of  life  insurance,  each  shall  have  been  examined  and  rec- 
ommended as  insurable  by  a  reputable  physician,  and  shall  have  de- 
posited the  premium  for  one  year  of  insurance,  out  of  which  there 
shall  be  pledged  for  the  payment  of  death  losses  a  sufficient  sum  to 
pay  the  largest  possible  single  death  c]aim. 

Rates,  reserves,  mortality  table,  disability  benefits,  policy  provi- 
sions, benefits  on  lapse. 

2.  (a)  No  fraternal  beneficiary  order  or  society  not  authorized  or 
licensed  to  transact  business  within  this  state  on  the  twelfth  day  of 
July,  1907,  shall  be  Incorporated  within  this  state  or  be  licensed  or 
permitted  to  transact  business  within  this  state,  unless  its  laws  re- 
quire the  regular  payment  and  co'.lection  of  rates  of  assessment  under 
whatsoever  plan  of  business  it  has  adopted  not  lower  than  those  de- 
duced from  the  National  Fraternal  Congress  Mortality  Table  com- 
puted upon  an  interest  assumption  of  four  per  centum  per  annum, 
nor  unless  it  shall  hold  assets  sufficient  to  provide  for  its  other  liabil- 
ities and  its  reserve  liability,  upon  its  own  plan  and  assumptions 
within  the  foregoing  limitations. 

(b)  The  National  Fraternal  Congress  Mortality  Table  is  as  follows: 


Age 


20- 
21. 
22- 
23- 

24. 
25. 
26. 
27., 
28- 
29-, 
30- 
31-, 
32- 
33. 
34- 
35., 
36- 
37-, 
38-, 
39. 
40-. 
41-. 
42- 
43- 
44.. 
45- 
46- 
47- 
48_, 
49- 
50. 
51. 
52- 
53- 
54- 
55- 
56- 
57. 
58. 
59- 


Number 
living 


Number   }    Proba- 
dying         bility  of 
dying 


100,000 
99,500 
98.999 
98,497 
97,994 
97,489 
96,982 
96.472 
95,959 
95,442 
94,920 
94,393 
93,860 
93,320 
92,772 
92.215 
91,648 
91.070 
90.479 
89,873 
89.251 
88.611 
87,951 
87,268 
86,560 
85,826 
85,065 
84.275 
83.453 
82.596 
81.702 
80.767 
79.786 
78.757 
77.674 
76.534 
75.332 
74,062 
72.720 
71.302 


500 
501 
502 
503 
505 
5(i7 
510 
513 
517 
522 
527 
533 
540 
548 
557 
567 
578 
591 
606 
622 
640 
660 
683 
708 
734 
761 
790 
822 
857 
894 
935 
981 
1,029 
1,083 
1.140 
1,202 
1,270 
1.342 
1.418 
1,501 


.0050000 
.0(150352 
.0050708 
.0051U68 
.0051535 
.0052006 
.0052587 
.0053176 
.0063877 
.0054693 
.0055520 
.0056466 
.0,57532 
.0058723 
.0060040 
.0061487 
.0063067 
.0(164895 
.0066977 
.0069209 
.0071708 
.0074483 
.0077657 
.0081129 
.0084797 


.0092870 
.0097538 
.0102693 
.01.18238 
.0114440 
.0121460 
.0128970 
.0137512 
.0146767 
.0157054 
.0168587 
.0181200 
.0194994 
.0210513 


Age 


Number 
living 


69,801 

68.213 

66.532 

64,754 

62,874 

60.889 

58,795 

56,589 

54,271 

51,841 

49,302 

46.657 

43.913 

41,081 

38,172 

35,203 

32,194 

29,168 

26,152 

23,175 

21), 270 

17,471 

14,812 

12,327 

10,047 

7,997 

6,197 

4,658 

3,381 

2.358 

1.570 

991 

587 

323 

162 

73 

29 

10 

3 


Number   '    Proba- 
dying         bility  of 
dying 


1,588 

1,681 

1,778 

1,880 

1,985 

2,094 

2.206 

2,318 

2,430 

2,539 

2.645 

2,744 

2,832 

2,909 

2,969 

3,009 

3,026 

3,016 

2,977 

2,905 

2.799 

2,659 

2,485 

2,280 

2.050 

1,800 

1,539 

1,277 

1,023 

788 

579 

404 

264 

161 

89 

44 

19 

1 

3 


.0227504 
.0246434 
.0267240 
.0290330 
.0315711 
.034,S904 
.0375202 
.0409620 
.0447753 
.0489767 
.0536489 
.0588122 
.0644912 
.0708113 
.0777795 
.0854757 
.0939927 
.1034010 
.1138345 
.1253506 
.1380858 
.1521951 
.1677694 
.1849599 
.2040410 
.2250844 
.2483460 
.2741520 
.3025732 
.3341815 
.3687898 
.41176690 
.4497445 
.4984520 
.5493827 
.6027397 
.6551724 
.7000000 
l.OOOOOOff 


1958—2  152  Ch.  89 

(c)  The  payment  of  any  disability  benefits  promised  or  rendered  by 
any  such  society  or  order  hereafter  organized  or  admitted  to  this 
state  that  are  not  provided  for  in  the  rates  deduced  from  said  table 
of  mortality  as  is  herein  required  must  be  amply  provided  for  in  ad- 
dition to  the  rates  of  assessments  as  herein  required. 

(d)  Every  contract  or  certificate  of  insurance  Issued  or  delivered 
by  any  fraternal  benefit  society,  hereafter  organized  or  admitted  in 
this  state,  shall  have  attached  thereto  a  copy  of  any  application  re- 
ferred to  therein  and  shall  contain: 

(1)  A  statement  of  the  table  of  mortality  or  other  basic  table  and 
rate  of  interest  and  method  upon  which  the  reserve  on  such  con- 
tract is  to  be  computed. 

(2)  A  statement  in  the  body  of  the  contract  or  as  a  rider  made  a 
part  thereof  and  affixed  thereto,  giving  in  dollars  and  cents  for  each 
age  during  the  possible  history  of  the  contract,  the  mortality  charge  or 
cost  of  insurance  and  the  reserve  upon  the  foregoing  assumptions. 

(3)  In  the  case  of  every  society  issuing  all  its  contracts,  as  provided 
in  this  subsection,  such  last  mentioned  statement  shall  also  provide 
that  upon  any  forfeiture  or  change  in  the  contract,  one  or  more  bene- 
fits shall  be  given  to  the  insured  or  beneficiary,  or  both,  as  specified 
therein,  the  present  value  whereof  shall  equal  the  reserve  less  a  sur- 
render charge,  if  any,  not  exceeding  one  per  centum  on  the  amount 
of  the  insurance  specified  in  the  contract.  One  of  said  benefits  shall 
be  either  (a)  an  automatic  loan  to  cover  any  unpaid  premium  or 
assessment,  with  interest  at  a  specified  rate,  until  the  reserve  (less 
the  surrender  charge,  and  indebtedness,  if  any)  is  exhausted,  or  (b) 
extended  or  paid-up  insurance  to  the  amount  the  reserve  (less  the 
surrender  charge  and  indebtedness,  if  any)  will  purchase  as  a  net 
single  premium  on  the  table  and  rate  specified,  the  duration  or  amount 
of  which  extended  or  paid-up  insurance  shall  be  specified  in  such 
statement. 

(e)  Provided  that  this  section  shall  not  be  construed  to  prevent  the 
organization  of  a  society,  and  its  transaction  of  business,  on  a  plan 
set  forth  in  the  contract  which  provides  for  sufficient  contributions  by 
each  member  in  each  year  to  pay  his  share  of  the  actual  death  claims 
of  the  year  through  the  collection  of  assessments  graded  according  to 
the  aforesaid  mortality  table,  or  to  any  other  mortality  table  recognized 
by  law,  without  any  reserve,  or  with  such  reserve  as  may  accumulate 
from  overpayments  of  individual  members,  in  which  case  each  mem- 
ber shall  each  year  be  informed  of  his  credit  and  of  the  charge  for 
his  cost  of  insurance. 

(f)  Any  domestic  fraternal  benefit  society  authorized  to  transact 
business  in  this  state  may  establish  and  maintain  two  or  more  sep- 
arate classes  of  members  subject  to  the  conditions  and  restric- 
tions following  and  to  such  as  may  be  prescribed  in  its  articles  or 
by-laws.  The  proceeds  of  assessments,  other  than  for  expense  pur- 
poses, and  the  apportioned  funds  or  reserves  maintained  for  each 
such  class  of  members,  shall  be  kept  irrevocably  separate  and  apart 
from  other  assets  or  funds  of  any  other  class  of  members  or  of  the 


Ch.  89  153  1958—3 

society,  and  all  claims  on  certificates  held  by  members  in  any  class 
shall  be  paid  only  from  funds  belonging  to  such  class;  provided,  that 
such  transfer  of  gains  from  interest  or  investments,  or  of  savings  in 
mortality,  or  of  gains  from  forfeitures  may  be  made  between  classes 
of  members  as  is  authorized  in  the  by-laws;  and,  provided  further, 
that  for  the  purpose  of  apportioning  death  losses  to  the  various  classes, 
the  mortality  may  be  merged  as  is  authorized  in  the  by-laws.  Pursuant 
to  such  provisions  as  may  be  made  in  the  by-laws,  any  member  may 
be  permitted  to  transfer  from  a  lower  to  a  higher  rate  class,  and  to 
have  transferred  with  him  to  such  other  class  such  part  of  any  accumu- 
lated funds  held  for  such  member  as  provided  in  the  by-laws.  No  such 
classification  shall  be  rescinded  or  discontinued.  The  foregoing  condi- 
tions and  restrictions  shall  not  apply  to  classes  heretofore  established, 
nor  to  accident  insurance  transacted  by  a  fraternal  benefit  society. 

Old  members,  license  for,  special  license,  separate  funds. 

3.  (a)  Any  fraternal  beneficiary  or  mutual  benefit  society  having 
members  residing  in  this  state  on  the  first  day  of  May,  1911,  shall, 
without  complying  with  the  requirements  of  subsection  2  hereof,  but 
upon  complying  with  the  other  requirements  of  law  relating  to  such 
societies,  be  entitled  to  transact  the  business  of  insurance  with  such 
members  and  with  members  who  shall  thereafter  come  into  this  state 
after  having  become  such  members. 

(b)  Provided  that  such  society  not  complying  with  the  requirements 
of  subsection  2  hereof  shall  not  be  entitled  to  solicit,"  receive,  or  accept 
new  members  within  this  state,  until  it  shkll  have  received  the  license 
of  the  commissioner  therefor,  which  shall  only  be  issued  after  exami- 
nation by  the  commissioner  if  it  appears  and  due  proof  if  filed  with 
him,  that  such  society  has  lawfully  adopted  and  incorporated  into  its 
charter,  articles,  or  by-laws  a  valid  and  binding  provision  that  from 
such  date  new  members  be  solicited,  received,  or  accepted  within  this 
state  only  according  to  the  provisions  of  said  subsection  2,  and  that 
the  amount  of  funds  necessary  to  meet  the  reserve  liability  on  each 
policy  or  certificate  of  such  new  members  shall  be  kept  separate  and 
apart  from  the  other  funds  of  the  society  in  trust  for  each  such  member 
and  shall  be  used  only  for  the  purpose  of  maintaining  such  reserve 
and  maturing  such  policies  or  certificates,  and  that  a  policy  or  certifi- 
cate shall  be  issued  to  each  member  reciting  the  foregoing  conditions 
and  specifying  the  premium,  and  that  assessments,  if  any,  shall  be 
levied  only  in  the  manner  and  for  the  specific  purposes  therein  enum- 
erated. 

(c)  Provided  that  when  such  society  shall  in  all  respects  as  to  all  its 
members  have  complied  with  the  requirements  of  subsection  2  of  this 
section,  it  shall  no  longer  be  required  to  keep  such  funds  separate  as 
required  by  paragraph  (b)  of  this  subsection. 


1958—5  154  Ch.  89 

Security  deposit  by  accident  associations. 

4.  In  case  of  an  accident  association  before  license  is  issued,  it  shall 
deposit  with  the  state  treasurer  a  security  for  the  payment  of  claims 
against  said  corporation  in  case  of  voluntary  dissolution  or  the  winding 
up  of  its  affairs,  good,  interest-bearing  securities  to  be  approved  by  the 
commissioner  of  insurance  in  the  amount  in  par  value,  exclusive  of  in- 
terest, of  not  less  than  one  thousand  dollars;  such  securities  shall  be 
retained  by  the  state  treasurer  so  long  as  said  corporation  shall  con- 
tinue to  do  business.  Provided  that  said  corporation  may  at  any  time 
upon  the  approval  of  the  commissioner  of  insurance,  substitute  other 
securities  of  equal  value;  the  interest  on  said  securities  shall  be  pay' 
able  to  the  said  corporation,  and  in  case  of  the  dissolution  of  said  cor- 
poration or  the  winding  up  of  Its  affairs,  the  said  securities  shall  be 
delivered  to  the  duly  appointed  receiver  of  the  said  corporation  or  to 
the  corporation  itself,  upon  the  certificate  of  the  commissioner  of  In- 
surance. 

Deposit  in  another  state. 

5.  In  case  of  associations  already  organized  and  doing  business  under 
the  provisions  of  this  act,  the  securities  herein  above  provided  for, 
shall  be  deposited  with  the  state  treasurer  in  the  same  manner,  for 
the  same  purpose  and  to  the  same  effect  as  above  provided,  on  or  be- 
fore the  first  day  of  January,  1902.  Provided,  however,  that  when  by 
the  statutes  of  any  other  state,  mutual  benefit  associations  doing  an 
accident  or  health  business  organized  or  doing  business  therein,  are 
required  to  keep  on  deposit  with  the  state  treasurer  or  other  state 
officer,  securities  for  the  protection  of  policyholders  generally  and  any 
such  company  shall  furnish  to  the  commissioner  of  insurance  of  this 
state  the  certificate  of  the  proper  officer  of  such  other  state,  showing 
the  amount  and  character  of  the  securities  so  deposited  with  him  and 
it  shall  appear  therefrom  that  the  said  securities  are  equal  in  market 
value  and  availability  to  one  thousand  dollars,  and  that  said  securities 
consist  of  stock  or  bonds  of  the  United  States  or  of  this  state  or  of 
any  city  or  county  in  this  state  authorized  by  act  of  legislature  to  issue 
the  same  or  of  state,  county  or  city  bonds  or  of  stocks  of  the  state 
where  such  company  or  association  is  organized  or  of  bonds  and 
mortgages  on  improved  real  estate,  worth  double  the  sum  loaned  there- 
on, and  it  shall  further  appear  from  the  laws  of  such  other  state  that 
the  securities  so  deposited  are  subject  to  be  made  available  to  satisfy 
judgments  of  policyholders  in  any  manner  corresponding  to  that  pro- 
vided for  the  care  of  securities  deposited  under  this  act,  the  commis- 
sioner of  insurance  shall  thereupon  be  authorized  to  issue  to  such  com- 
pany an  authority  or  license  to  transact  the  business  of  accident  and 
health  insurance  within  this  state,  without  any  such  deposit  of  securi- 
ties with  the  state  treasurer  of  this  state  as  is  above  provided. 


Ch.  89  155  1958—15 

Limit  of  liability  not  to  exceed  one-tenth  of  assets. 

6.  No  casualty  or  accident  insurance  company,  association,  society, 
order  or  corporation,  now  or  at  any  time  hereafter  transacting  business 
within  this  state,  shall  assume  a  greater  liability  in  its  contracts  of 
insurance  to  any  one  person,  payable  in  case  of  death  of  the  assured, 
than  one-tenth  of  the  amount  of  its  assets  reported  to  the  commissioner 
of  insurance,  and  in  actual  existence  at  the  time  of  the  last  preceding 
annual  report  to  the  said  commissioner  of  insurance. 

Mutual  benefit  societies;    articles,  amendment,  notice. 

7.  The  articles  of  organization  of  any  fraternal  or  beneficiary  cor- 
poration, society,  order,  or  association  may  be  amended  as  prescribed 
herein,  whether  organized  under  this  chapter  or  chapter  86  of  the  stat- 
utes. In  case  of  any  corporation  having  subordinate  lodges  or  other 
denominated  divisions,  after  the  proposed  amendment  has  been  filed 
with  the  department  or  departments  where  the  original  articles  are 
filed  and  a  copy  thereof  with  notice  of  the  manner  and  the  time  and 
place  of  voting  has  been  mailed  to  each  member  at  least  thirty  days 
prior  thereto,  the  vote  on  such  amendment  may  be  taken  at  the  usual 
meeting  place  of  such  lodges  or  other  denominated  divisions  and  the  re- 
sults returned  and  canvassed  in  such  uniform  manner  as  the  board  of 
directors  or  other  governing  officers  with  like  powers  may  prescribe 
In  such  notice.  The  time  and  place  of  voting  may  be  specified  by  re- 
ferring generally  to  a  stated  meeting  of  such  subordinate  lodge  or  other 
denominated  division  in  such  manner  as  to  fully  inform  the  members. 

Vote  on  amendments. 

8.  An  amendment  acted  upon  as  provided  in  subsection  7  may  be 
adopted  by  a  vote  of  a  majority  of  the  members  voting  thereon. 

License,  expiration,  revocation,  name,  existing  contracts,  reports. 
15.     (a)  No   fraternal   benefit    society   shall   transact   any   business 
herein  without  a  license  from  the  commissioner  of  insurance. 

(b)  Societies  which  are  now  or  shall  be  hereafter  authorized  to  trans- 
act business  in  this  state  may  continue  such  business  until  the  first  day 
of  April  next  succeeding  the  taking  effect  of  this  section,  or  the  grant- 
ing of  such  license,  and  the  authority  of  such  societies  may  thereafter 
be  renewed  annually  to  terminate  on  the  first  day  of  the  succeeding 
April,  provided  that  the  license  shall  continue  in  force  and  effect  until 
the  new  license  be  issued  or  specifically  refused. 

(c)  A  certified  copy  of  such  license  shall  be  prima  facie  evidence 
that  the  licensee  is  a  fraternal  benefit  society  within  the  meaning  of 
section  1956. 

(e)  No  license  shall  be  issued  to  any  society,  hereafter  organized 
or  applying  for  admission,  having  a  name  so  similar  to  the  name  of 
any  society  theretofore  licensed  in  this  state  as  to  mislead  the  public. 

(f)  Nothing  in  this  or  any  other  section  of  the  statutes,  shall  be 
construed   as   preventing   any  such   society   from   continuing  in   good 


1958—17  15(j  Ch.  89 

faith  all  contracts  issued  or  delivered  in  this  state  during  the  time 
such  society  was  legally  authorized  to  transact  business  herein;  pro- 
vided, such  society  shall,  so  long  as  any  contract  remains  in  force  In 
this  state,  make  such  annual  reports  as  required  by  law  during  the 
year  previous  to  the  last  year  of  its  being  licensed,  or  at  its  option 
as  thereafter  required  by  law. 

Admission,  foreign  society,  conditions,  examination,  statement. 

16.  (a)  Any  foreign  fraternal  benefit  society  which  is  not  now 
authorized  to  transact  business  in  this  state,  may  be  licensed  to 
transact  business  in  this  state,  upon  an  examination  by  or  under  the 
direction  of  the  commissioner  of  insurance  of  this  state,  which  shall 
verify  and  be  made  after  the  filing  with  him  of: 

(1)  a  duly  certified  copy  of  its  charter  or  articles  of  association; 

(2)  a  copy  of  its  by-laws  and  of  any  other  constitution  and  laws,  cer- 
tified by  its  secretary  or  corresponding  officer; 

(3)  a  power  of  attorney  to  the  commissioner  as  herein  provided; 

(4)  a  certificate  from  the  proper  official  in  its  home  state,  province, 
or  country  that  the  society  is  legally  organized  and  licensed  to  trans- 
act business  therein; 

(5)  a  copy  of  each  of  its  contracts  which  must  each  show  that  bene- 
fits are  provided  for  by  periodical  or  other  payments  by  persons  hold- 
ing similar  contracts; 

(6)  a  statement  of  its  business  under  oath  of  its  president  and  sec- 
retary or  corresponding  officers,  in  the  form  required  by  the  commis- 
sioner, showing  that  it  complies  with  all  the  provisions  of  law  relating 
to  like  domestic  societies; 

(7)  such  other  information  as  he  may  deem  necessary  to  a  proper 
exhibit  of  its  business  and  plan  of  working; 

(8)  a  statement  signed  by  its  president  and  secretary,  or  correspond- 
ing officers,  including  a  copy  of  a  reso'ution  of  its  board  of  directors 
or  other  governing  body,  authorizing  the  same; 

(a)  That  it  will  annually  file,  as  long  as  any  contracts  Issued  or  de- 
livered in  this  state  remain  in  force  therein,  its  annual  report  as  re- 
quired by  subsection  15  of  this  section,  and 

(b)  that  it  will  accept  a  license  which  shall  immediately  terminate 
upon  its  removal,  or  making  an  application  to  remove  to  any  court 
of  the  United  States,  any  action  or  proceeding  begun  in  any  court  of 
this  state,  upon  any  such  contract  or  upon  any  business  or  transaction 
had  in  this  state. 

Attorney  for  service  of  process. 

17.  (a)  Every  society,  whether  domestic  or  foreign,  not  heretofore 
having  done  so,  shall  before  being  licensed,  by  any  Instrument  in  writ- 
ing duly  authorized  and  executed,  appoint  the  commissioner  of  insur- 
ance and  his  successors  its  true  and  lawful  attorney  upon  whom  all 
legal  process  in  any  action  or  proceeding  against  It  shall  be  served, 
and  therein  agree  that  any  lawful  process  against  it,  which  may  be 
served  upon  such  attorney,  shall  be  of  the  same  force  and  validity 
as  if  served  upon  the  society,  and  that  this  authority  shall  continue  In 


Ch.  89  157  1958—18 

force  irrevocably  so  long  as  any  liability  of  tbe  society  remains  out- 
standing in  this  state. 

(b)  The  service  of  such  process  shall  be  made  by  leaving  the  same, 
in  duplicate,  in  the  hands  or  office  of  the  commissioner. 

(c)  One  of  the  duplicates  of  such  instruments,  certified  by  the  com- 
missioner as  having  been  served  upon  him,  shall  be  deemed  sufficient 
evidence  thereof,  and  service  upon  such  attorney  shall  be  deemed 
service  upon  the  principal. 

(d)  When  legal  process  is  served  upon  the  commissioner  as  at- 
torney for  any  society,  he  shall  forthwith  forward  one  of  the  dupli- 
cate copies  of  process  served  on  him  to  its  secretary,  or  corresponding 
officer,  or  to  such  other  person  as  may  have  been  previously  designated 
by  the  society  by  written  notice  filed  in  the  office  of  the  commissioner. 

(e)  As  a  condition  of  valid  and  effective  service  and  of  the  duty  of 
the  commissioner  in  the  premises,  the  plaintiff  in  each  such  process 
shall  pay  to  the  commissioner,  at  the  time  of  service  thereof,  the  sum 
of  two  dollars,  which  the  said  plaintiff  shall  recover  as  taxable  costs, 
if  he  prevails  in  the  suit. 

(f)  The  commissioner  shall  keep  a  record  of  all  such  processes, 
which  shall  show  the  day  and  hour  of  service. 

(g)  Legal  process  shall  not  be  served  upon  any  such  society  except 
In  the  manner  and  upon  the  attorney  provided  herein. 

(h)  Any   society  so   served   shall   have   thirty  days   from   the   date 
of  such  service  in  which  to  serve  its  answer,  pleading,  or  defense. 
Fraternal  benefit  societies  may  insure  children. 

18.  (a)  Any  fraternal  benefit  society  authorized  to  do  business  in 
this  state,  and  operating  on  the  lodge  plan,  may  provide  in  its  con- 
stitution and  by-laws,  in  addition  to  other  benefits  provided  for  therein, 
for  the  payment  of  death  or  annuity  benefits  upon  the  lives  of  chil- 
dren between  the  ages  of  two  and  eighteen  years  at  next  birthday,  for 
whose  support  and  maintenance  a  member  of  such  society  is  respon- 
sible. Provided,  Jioivever,  that  any  society  wJiich  collects  rates  of  as- 
sessments not  less  than  those  required  l)y  paragraph  (a)  of  subsection  2 
of  section  1958  and  maintaining  legal  reserves  as  provided  in  said 
section  or  has  a  class  operating  on  such  rates  and  maintaining  such 
reserves,  may  admit  any  children  betxceen  the  ages  of  two  and  eighteen 
years  at  next  birthday.  Any  such  society  may,  at  its  option,  organize 
and  operate  branches  for  such  children  and  membership  in  local  lodges 
and  initiation  therein  shall  not  be  required  of  such  children,  nor  shall 
they  have  any  voice  in  the  management  of  the  society.  The  total 
benefits  payable  as  above  provided  shall  in  no  case  exceed  the  follow- 
ing amounts  at  ages  at  next  birthday  at  time  of  death,  respectively,  as 
follows:  Two,  thirty-four  dollars;  three,  forty  dollars;  four,  forty- 
eight  dollars;  five,  fifty-eight  dollars;  six,  one  hundred  forty  dollars; 
seven,  one  hundred  sixty-eight  dollars;  eight,  two  hundred  dollars; 
nine,  two  hundred  forty  dollars;  ten,  three  hundred  dollars;  eleven, 
three  hundred  eighty  dollars;  twelve,  four  hundred  sixty  dollars; 
thirteen  to  fifteen,  five  hundred  twenty  dollars;  and  sixteen  to 
eighteen,  where  not  otherwise  authorized  by  law,  six  hundred  dollars. 


1958—18  158  Ch.  89 

(b)  No  benefit  certificate  as  to  any  child  shall  take  effect  until  after 
medical  examination  or  inspection,  in  accordance  with  the  laws  of 
the  society,  nor  shall  any  such  benefit  certificate  be  Issued  unless  the 
society  shall  simultaneously  put  in  force  at  least  five  hundred  such 
certificates,  on  each  of  which  at  least  one  assessment  has  been  paid, 
nor  where  the  number  of  lives  represented  by  such  certificate  fa'.ls 
below  five  hundred.  The  death  benefit  contributions  to  be  made  upon 
such  certificate  shall  be  based  upon  the  "Standard  Industrial  Mor- 
tality Table"  or  the  "English  Life  Table  Number  Six"  and  a  rate  of 
interest  not  greater  than  four  per  cent  per  annum,  or  upon  a  higher 
standard;  provided  that  contributions  may  be  waived  or  returns  may 
be  made  from  any  surplus  held  in  excess  of  reserve  and  other  liabilities, 
as  provided  in  the  by-laws;  provided  that  a  surplus  fund  of  at  least 
one  thousand  dollars  shall  be  maintained  to  guarantee  the  payment 
of  the  death  benefits  forthwith  upon  proof  of  death,  and,  provided 
further  that  extra  contributions  shall  be  made  if  such  surplus  or  the 
reserves  hereafter  provided  for  become  impaired. 

(c)  Any  society  entering  into  such  insurance  agreements  shall  main- 
tain on  all  such  contracts  the  reserve  required  by  the  standard  of  mor- 
tality and  interest  adopted  by  the  society  for  computing  contributions 
as  provided  in  subdivision  (b),  and  the  funds  representing  the  benefit 
contributions  and  all  accretions  thereon  shall  be  kept  as  separate  and 
distinct  funds,  independent  of  the  other  funds  of  the  society,  and  shall 
not  be  liable  for  nor  used  for  the  payment  of  the  debts  and  obligations 
of  the  society  other  than  the  benefits  herein  authorized.  A  society  may 
provide  that  when  a  child  reaches  the  minimum  age  for  initiation  into 
membership  in  such  society,  any  benefit  certificate  issued  hereunder 
may  be  surrendered  for  cancellation  and  exchanged  for  any  other  form 
of  certificate  issued  by  the  society,  if  such  surrender  will  not  reduce 
the  number  of  lives  insured  in  the  branch  below  five  hundred,  and 
upon  the  issuance  of  such  new  certificate  any  reserve  upon  the 
original  certificate  herein  provided  for  shall  be  transferred  to  the 
credit  of  the  new  certificate.  "  Neither  the  person  who  originally 
made  application  for  benefits  on  account  of  such  child,  nor  the  bene- 
ficiary named  in  such  original  certificate,  nor  the  person  who  paid  the 
contributions,  shall  have  any  vested  right  in  such  new  certificate,  the 
free  nomination  of  a  beneficiary  under  the  new  certificate  being  left 
to  the  child  so  admitted  to  benefit  membership. 

(d)  An  entirely  separate  financial  statement  of  the  business  trans- 
actions and  of  assets  and  liabilities  arising  therefrom  shall  be  made 
In  its  annual  report  to  the  insurance  commissioner  by  any  society 
availing  Itself  of  the  provisions  hereof.  The  separation  of  assets,  funds 
and  liabilities  required  hereby  shall  not  be  terminated,  rescinded,  or 
modified,  nor  shall  the  funds  be  diverted  to  any  use  other  than  as  speci. 
fled  in  subdivision  (c),  as  long  as  any  certificates  issued  hereunder  re- 
main in  force,  and  this  requirement  shall  be  recognized  and  enforced 
in  any  liquidation,  reinsurance,  merger,  or  other  change  in  the  condi- 
tion of  the  status  of  the  society. 


Ch.  89  159  1959 

(e)  Any  society  shall  have  the  right  to  provide  in  its  laws  and  the 
certificate  issued  hereunder  for  specified  payments  on  account  of  the 
expense  or  general  fund,  which  payments  shall  or  shall  not  be  mingled 
with  the  general  fund  of  the  society  as  its  constitution  and  by-laws  may 
provide. 

(f)  In  the  event  of  the  termination  of  membership  in  the  society  by 
the  person  responsible  for  the  support  of  any  child,  on  whose  account 
a  certificate  may  have  been  issued  as  provided  herein,  the  certificate 
may  be  continued  for  the  benefit  of  the  estate  of  the  child,  provided 
the  contributions  are  continued,  or  for  the  benefit  of  any  other  person 
responsible  for  the  support  and  maintenance  of  such  child,  who  shall 
assume  the  payment  of  the  required  contributions. 

Admission  of  fraternal  companies. 

19.  Any  fraternal  or  mutual  benefit  society,  corporation  or  associa- 
tion with  a  lodge  system  of  membership,  ritualistic  form  of  work  and 
representative  form  of  government,  organized  and  existing  under  the 
laws  of  this  state  or  of  any  other  state  or  country,  which  had  a  total 
membership  of  not  less  than  five  hundred  holding  certificates  of  in- 
surance, with  a  local  lodge  of  not  less  than  ten  of  such  members  located 
in  the  state  of  Wisconsin  on  or  before  the  first  day  of  July,  1907,  and 
has  continued  to  maintain  such  active  lodge  or  lodges  in  this  state  . 
since  such  date,  but  for  any  reason  has  not  secured  a  license  to 
transact  business  in  this  state  under  any  law  of  the  state  in  effect 
since  July  1,  1907,  shall  be  entitled  to  apply  for  a  license  to  continue 
doing  business  in  this  state,  upon  complying  with  the  requirements  of 
any  law  in  effect  in  this  state  on  July  1,  1907,  and  of  any  law  becoming 
effective  subsequent  thereto,  except  that  it  shall  not  be  obligatory  to 
comply  with  the  requirements  of  subsections  2  and  3  of  section  1958  of 
the  statutes;  provided,  however,  that  application  for  the  aforesaid 
license  shall  be  made  on  or  before  January  1,  1918,  to  the  proper 
authority  of  this  state.  The  license  of  any  society  admitted  under  the 
provisions  of  this  subsection  shall  not  be  renewed  on  or  after  April  1, 
1919,  unless  all  members  admitted  in  this  state  on  and  after  that  date 
are  placed  in  an  adequate  rate  class  or  classes  of  members.  The  rates 
of  assessment  on  such  class  or  classes  shall  be  at  least  as  high  as  those 
computed  on  the  National  Fraternal  Congress  Table  of  Mortality  and 
four  per  cent  Interest  assumption.  The  reserves  of  such  class  or 
classes  of  members  shall  be  segregated  from  the  other  funds  of  the 
society  and  shall  be  used  for  the  benefit  of  the  members  of  these 
classes  only. 

Valuation  of  certificates;    annual  report. 

Section  1959.  22.  (a)  As  a  part  of  its  annual  statement  every 
fraternal  benefit  society  shall  report  a  valuation  of  its  certificates  in 
force  as  of  the  end  of  each  year,  beginning  with  December  31,  1912. 

(b)  Such  valuation  shall  be  certified  by  a  competent  accountant  or 


1959— 22m  160  Ch.  89 

actuary,  or  at  the  request  and  expense  of  the  society,  verified  by  the 
actuary  of  the  department  of  insurance  of  the  home  state  of  the 
society. 

(c)  The  time  for  filing  such  valuation  may  be  extended  by  the  com- 
missioner not  exceeding  ninety  days. 

(d)  The  legal  minimum  standard  of  valuation  for  all  certificates, 
except  for  disability  benefits,  shall  be  the  National  Fraternal  Congress 
table  of  mortality  specified  by  law,  or  at  the  option  of  the  society,  any 
higher  table  or  any  table  authorized  by  section  1950,  or,  at  its  option, 
ii  may  use  a  table  based  upon  the  society's  own  experience  of  at  least 
twenty  years  and  covering  not  less  than  one  hundred  thousand  lives 
with  an  interest  assumption  of  not  more  than  four  per  centum  per 
annum,  which  ever  mortality  table  is  adopted. 

(e)  Each  valuation  report  shall  set  forth  clearly  and  fully  the  mor- 
tality and  interest  basis  and  the  method  of  valuation. 

(f)  Any  society  providing  for  disability  benefits  shall  keep  the  net 
contributions  for  such  benefits  in  a  fund  separate  and  apart  from  all 
other  benefit  and  expense  funds  and  the  valuation  of  all  other  business 
of  the  society;  provided  that  where  a  combined  contribution  table  is 
used  by  a  society  for  both  death  and  permanent  total  disability  bene- 
fits, the  valuation  shall  be  according  to  tables  of  reliable  experience 
approved  by  the  commissioner  of  insurance,  and  in  such  case  a  separa- 
tion of  the  funds  shall  not  be  required. 

(g)  The  valuation  herein  provided  for  shall  not  be  considered  or  re- 
garded as  a  test  of  the  financial  solvency  of  the  society,  but  each  so- 
ciety shall  be  held  to  be  legally  solvent  so  long  as  the  funds  in  its 
possession  are  equal  to  or  in  excess  of  its  matured  liabilities. 

(h)  Beginning  with  the  year  1914  a  report  of  such  valuation  and  an 
explanation  of  the  facts  concerning  the  condition  of  the  society  there- 
by disclosed  shall  be  printed  and  mailed  by  the  society  to  each  bene- 
ficiary member  of  the  society  not  later  than  the  first  of  each  year, 
or,  in  lieu  thereof,  such  report  of  valuation  and  showing  of  the  society's 
condition  as  thereby  disclosed  may  be  published  in  the  society's  offi- 
cial paper  and  the  issue  containing  the  same  mailed  to  each  beneficiary 
member  of  the  society. 

(1)  This  subsection  shall  not  apply  to  any  foreign  society  issuing 
no  certificate  in  excess  of  five  hundred  dollars  and  licensed  in  this 
state  before  January  1,  1911. 

Valuation,  basis. 

22m.  (1)  (a)  In  lieu  of  the  valuation  requirements  of  subsection 
22  of  this  section,  any  society  accepting  in  its  laws  the  provisions  of 
this  section  may  value  its  certificates  on  a  basis,  herein  designated 
"accumulation  basis,"  by  crediting  each  member  with  the  net  amount 
contributed  for  each  year  and  with  interest  at  approximately  the  net 
rate  earned,  and  by  charging  him  with  his  share  of  the  losses  for  each 
year,  herein  designated  "cost  of  insurance,"  and  carrying  the  balance, 
if  any,  to  his  credit. 


Ch.  89  161  1959— 22m 

(b)  The  charge  for  the  cost  of  insurance  may  be  according  to  the 
actual  experience  of  the  society  applied  to  a  table  of  mortality  recog- 
nized by  the  law  of  this  state,  and  shall  take  into  consideration  the 
amount  of  risk  during  each  year,  which  shall  be  the  amount  payable 
at  death  less  the  credit  to  the  member. 

(c)  Except  as  specifically  provided  in  its  articles  or  laws  of  contracts, 
no  charge  shall  be  carried  forward  from  the  first  valuation  hereunder 
against  any  member  for  any  past  share  of  losses  exceeding  the  contribu- 
tions and  credit. 

(d)  If,  after  the  first  valuation,  any  member's  share  of  losses  for 
any  year  exceeds  his  credit  including  the  contribution  for  the  year, 
the  contribution  shall  be  increased  to  cover  his  share  of  the  losses. 

(e)  Any  such  excess  share  of  losses  chargeable  to  any  member  may 
be  paid  out  of  a  fund  or  contributions  especially  created  or  required 
for  such  purpose. 

(2)  Any  member  may  transfer  to  any  plan  adopted  by  the  society 
with  net  rates  on  which  tabular  reserves  are  maintained,  and  on  such 
transfer  shall  be  entitled  to  make  such  application  of  his  credit  as  pro- 
vided in  the  laws  of  the  society. 

(3)  Certificates  issued,  rerated,  or  readjusted  on  a  basis  providing 
for  adequate  rates  with  adequate  reserves  to  mature  such  certificates 
upon  assumptions  for  mortality  and  interest  recognized  by  the  law 
of  this  state,  shall  be  valued  on  such  basis,  herein  designated  the 
"Tabular  basis;"  provided  that  if  on  the  first  valuation  under  this 
section  a  deficiency  in  reserve  shall  be  shown  for  any  such  certificate, 
the  same  shall  be  valued  on  the  accumulation  basis. 

(4)  (a)  Whenever  in  any  society  having  members  upon  the  tabular 
basis  and  upon  the  accumulation  basis  the  total  of  all  costs  of  insur- 
ance provided  for  any  year  shall  be  insufficient  to  meet  the  actual  death 
and  disability  losses  for  the  year  the  deficiency  shall  be  met  for  the 
year  from  the  available  funds  after  setting  aside  all  credits  in  the 
reserve,  or  from  increased  contributions  or  by  an  increase  in  the  num- 
ber of  assessments,  applied  to  the  society  as  a  whole  or  to  classes  of 
members,  as  may  be  specified  in  its  laws. 

(b)  Savings  from  a  lower  amount  of  death  losses  may  be  returned 
in  like  manner  as  may  be  specified  in  its  laws. 

(5)  If  the  laws  of  the  society  so  provide,  the  assets  representing  the 
reserves  of  any  separate  class  of  members  may  be  carried  separately 
for  such  class  as  if  in  an  independent  society,  and  the  required  reserve 
accumulation  of  such  class  so  set  apart  shall  not  thereafter  be  mingled 
with  the  assets  of  other  classes  of  the  society. 

(6)  A  table  showing  the  credits  to  individual  members  for  each  age 
and  year  of  entry  and  showing  opposite  each  credit  the  tabular  reserve 
required  on  the  whole  life  or  other  plan  of  insurance  specified  in  the 
contract,  according  to  assumptions  for  mortality  and  interest  recognized 


1959-23  162  Ch.  89 

by  the  laws  of  the  state  and  adopted  by  the  society,  shall  be  filed  by 
the  society  with  each  annual  report  and  also  be  furnished  to  each 
member  before  July  first  of  each  year. 

(7)  In  lieu  of  the  aforesaid  statement  there  may  be  furnished  to 
each  member  within  the  same  time  a  statement  giving  the  credit  for 
such  member  and  giving  the  tabular  reserve  and  level  rate  required  for 
a  transfer  carrying  out  the  plan  of  insurance  specified  in  the  contract. 
No  table  or  statement  need  be  made  or  furnished  where  the  reserves 
are  maintained  on  the  tabular  basis. 

(8)  For  this  purpose  individual  bookkeeping  accounts  for  each 
member  shall  not  be  required  and  all  calculations  may  be  made  by 
actuarial  methods. 

(9)  Nothing  herein  contained  shall  (a)  prevent  the  maintenance 
of  such  surplus  over  and  above  the  credits  on  the  accumulation  basis 
and  the  reserves  on  the  tabular  basis  as  the  society  may  provide  by 
or  pursuant  to  its  laws;  (b)  nor  be  construed  as  giving  to  the  indi- 
vidual member  any  right  or  claim  to  any  such  reserve  or  credit  other 
than  in  manner  as  expressed  in  the  contract  and  its  laws;  (c)  nor 
as  making  any  such  reserve  or  credits  a  liability  in  determining  the 
legal  solvency  of  the  society. 

Society  may  request  valuation. 

22n.  Any  domestic  fraternal  benefit  society  may  request  the  com- 
missioner of  insurance  to  have  a  valuation  of  its  outstanding  certifi- 
cates and  an  apportionment  of  its  surplus  made  by  the  insurance  de- 
partment. Such  society  shall  pay  to  the  commissioner  of  insurance 
a  fee  not  to  exceed  ten  dollars  per  day  for  the  time  actually  spent  by 
each  employee  in  making  a  valuation  and  apportionment  of  its  surplus. 
The  commissioner  of  insurance  shall  pay  such  valuation  fees  into  the 
state  treasury. 

Referred  to  in  20.55  (S). 

Annual  report. 
23.  Every  such  organization  authorized  to  do  business  in  this  state 
shall,  on  or  before  the  first  day  of  March  of  each  year,  make  and  file 
with  the  commissioner  of  insurance  a  report  of  its  affairs  and  its  oper- 
ations during  the  year  ending  on  the  preceding  thirty-first  day  of 
December.  Such  report  shall  be  upon  blank  forms  to  be  provided  by 
such  commissioner,  and  shall  be  verified  under  oath  by  the  proper 
officers  thereof  and  be  published,  or  the  substance  thereof,  in  the  report 
of  the  commissioner  under  a  separate  part,  entitled  "Mutual  benefit 
societies,  orders  or  associations,"  and  shall  show: 

(1)  Number  of  certificates  issued  during  the  year  or  members  ad- 
mitted. 

(2)  Amount  of  indemnity  effected  thereby. 

(3)  Number  of  losses  or  benefit  liabilities. 

(4)  Number  of  losses  or  benefit  liabilities  paid. 

(5)  The  amount  received  from  each  assessment  in  each  class  for  the 
year. 


Ch.  89  163  1959—23 

(6)  Total  amount  paid  members,  beneficiaries,  legal  representatives 
and  heirs. 

(7)  Number  and  kind  of  claims  for  which  assessments  have  been 
made. 

(8)  Number  and  Icind  of  claims  compromised  or  resisted,  and  brief 
statements  of  reasons. 

(9)  Does  society  charge  annual  or  other  periodical  dues  or  admis- 
sion fees? 

(10)  How  much  on  each  one  thousand  dollars  annually  or  per  capita, 
as  the  case  may  be? 

(11)  Total  amount  received,  from  what  sources,  and  disposition 
thereof, 

(12)  Total  amount  of  salaries  paid  to  oflScers. 

(13)  Does  society  guarantee  in  its  certificate  fixed  amount  to  be 
paid,  regardless  of  amount  realized  from  assessments,  dues,  admis- 
sion fees  and  donations? 

(14)  If  so,  state  amount  guaranteed  and  the  security  of  such  guar- 
anty. 

(15)  Has  the  society  a  reserve  fund? 

(16)  If  so,  how  is  it  created,  and  for  what  purpose,  the  amount 
thereof,  and  how  invested. 

(17)  Has  the  society  more  than  one  class? 

(18)  If  so,  how  many,  and  the  amount  of  indemnity  In  each.  , 

(19)  Number  of  members  in  each  class. 

(20)  If  organized  under  the  laws  of  this  state,  under  what  law,  and 
at  what  time. 

(21)  If  organized  under  the  laws  of  any  other  state  or  territory,  the 
District  of  Columbia  or  any  foreign  country,  state  such  fact  and  the 
date  of  organization,  giving  chapter  and  year  and  date  of  passage  of 
the  act. 

(22)  Number  of  certificates  of  membership  in  force  at  beginning 
and  end  of  year;  if  more  than  one  class,  number  of  each. 

(23)  Number  of  certificates  of  membership  lapsed  during  the  year. 

(24)  Number  of  certificates  of  membership  in  force  In  this  state  at 
the  beginning  and  end  of  year;  if  more  than  one  class,  number  of 
each. 

(25)  Number  of  certificates  of  membership  in  this  state  lapsed  dur- 
ing the  year. 

(26)  Number  of  deaths  in  this  state  during  the  year. 

(27)  Number  and  amount  of  claims  paid  in  this  state  during  the 
year;  if  more  than  one  class,  number  and  amount  paid  in  each. 

(28)  Have  all  claims  been  paid  in  full?    If  not,  why  not? 

(29)  Approximate  maximum  and  average  age  of  membership  in  each 
class. 

(30)  Liabilities,  assets,  contingent  liabilities,  contingent  assets. 

(31)  A  schedule  giving  the  number  of  members  in  groups  according 
to  attained  ages,  the  amount  of  insurance  in  force,  the  amount  received 
in  premiums  or  mortuary  assessments  during  the  year,  the  number  of 
deaths  and  the  amount  of  death  losses  incurred  during  the  year  in  each 
group  at  attained  age;  provided,  however,  that  the  commissioner  of  in- 


1959—28  164  Ch.  89 

surance  may  waive  the  requirements  for  furnishing  the  information 
for  this  schedule  In  the  case  of  societies  which  operate  on  adequate 
rates  of  assessment  and  maintain  adequate  reserves;  and  in  the  case 
of  adequate  rate  classes  of  members  for  whom  adequate  reserves  are 
segregated  and  trusteed  in  accordance  with  law. 

Examinations. 

24.  The  commissioner  of  insurance,  or  any  person  he  may  ap- 
point, shall  have  the  power  of  visitation  and  examination  into  the 
affairs  of  any  domestic  or  foreign  society.  He  may  employ  assistants 
for  the  purpose  of  such  examination,  and  he,  or  any  person  he  may 
appoint,  shall  have  free  access  to  all  the  hooks,  papers,  and  documents 
that  relate  to  the  business  of  the  society  and  may  summon  and  qualify 
as  witnesses  under  oath  and  examine  its  officers,  agents,  and  employes 
or  other  persons  in  relation  to  the  affairs,  transactions,  and  condition 
of  the  society.  The  expense  of  such  examination  shall  be  paid  by  the 
society  examined,  upon  statement  furnished  by  the  commissioner  of 
insurance,  and  the  examination  shall  be  made  at  least  once  in  three 
years. 

Foreign  examination. 

25.  The  commissioner  of  insurance  may,  in  his  discretion,  in  lieu 
of  examining  such  foreign  society,  accept  the  examination  of  the  in- 
surance department  of  the  state,  territory,  district,  province,  or  country 
where  such  society  is  organized. 

Examination  on  request. 

26.  The  commissioner  of  insurance  shall,  at  the  request  of  any  or- 
ganization doing  business  under  these  provisions,  make  an  examina- 
tion thereof  and  furnish  a  certificate  of  the  result,  showing  all  its  as- 
sets, how  invested,  and  such  other  particulars  as  may  be  deemed 
necessary  to  show  the  character  and  condition  of  the  organization;  and 
the  necessary  expense  of  the  said  examination  shall  be  paid  by  it. 

Statements  during  examination. 

27.  Pending,  during,  or  after  an  examination  or  Investigation  of  any 
such  society,  either  domestic  or  foreign,  the  commissioner  of  insur- 
ance shall  make  public  no  financial  statement,  report,  or  finding,  nor 
shall  he  permit  to  become  public  any  financial  statement,  report,  or 
finding  affecting  the  status,  standing  or  rights  of  any  such  society, 
until  a  copy  thereof  shall  have  been  served  upon  such  society,  at  its 
home  office,  nor  until  such  society  shall  have  been  afforded  a  reason- 
able opportunity  to  answer  any  such  financial  statement,  report,  or 
finding  and  to  make  such  showing  in  connection  therewith  as  it  may 
desire. 

License  revocation;    hearing;    order;    review. 

28.  When  the  commissioner  of  insurance  on  investigation  is  satis- 
fied that  any  domestic  or  foreign  society  transacting  business  as  a 


Ch.  89  165  1960 

fraternal  benefit  society  has  exceeded  its  powers,  or  has  failed  to 
comply  with  any  provisions  of  the  laws  relating  to  fraternal  benefit 
societies  or  is  soliciting  business  by  the  use  or  circulation  of  any 
printed  matter  or  advertisement  misrepresenting  its  contracts  or 
conditions  or  is  otherwise  conducting  business  fraudulently,  or  In 
any  way  hazardous  to  its  members,  creditors  or  the  public,  or  is  not 
carrying  out  its  contracts  in  good  faith,  or  shall  fail  to  file  with  him 
a  copy  of  any  form  of  its  contract  before  it  shall  be  issued  or  deliv- 
ered in  this  state,  he  shall  notify  the  society  of  his  findings,  and 
state  in  writing  the  grounds  for  his  dissatisfaction,  and  after  reason- 
able notice,  require  said  society,  on  a  date  named,  to  show  cause  why 
its  license  should  not  be  refused  or  revoked.  If  on  the  date  named  in 
said  notice  such  objections  have  not  been  removed  to  the  satisfaction 
of  the  said  commissioner,  or  the  society  does  not  present  good  and 
sufficient  reasons  why  its  authority  to  transact  business  in  this  state 
should  not  at  that  time  be  refused  or  revoked,  he  may  refuse  to  renew 
or  revoke  the  authority  of  the  society  to  continue  business  in  this 
state.  All  decisions  and  orders  of  the  commissioner  of  insurance 
relating  to  fraternal  benefit  societies  may  be  reviewed  as  provided 
for  the  review  of  orders  relating  to  insurance  companies. 

Violation  of  law. 

29.  The  commissioner  of  insurance  shall  revoke  the  license  of  any 
organization  which  fails  to  comply  with  the  requirements  of  law;  and 
all  necessary  expenses  incurred  by  him  and  by  the  attorney-general 
in  enforcing  such  requirements  or  in  prosecuting  violations  thereof 
shall  be  paid  out  of  the  general  fund,  on  being  certified  to  the  secre- 
tary of  state  that  they  were  actually  and  necessarily  incurred  for  the 
purpose  stated. 

Taxation;    exemption;    fees. 

30.  Every  fraternal  benefit  society  organized  or  licensed  in  this 
state  shall  be  exempt  from  all  and  every  state,  county,  district, 
municipal,  and  school  taxes  or  fees,  but  shall  be  required  to  pay  all 
taxes  and  special  assessments  on  its  real  estate  and  office  equipment, 
and  the  same  fees  for  filing  its  articles  or  amendments  and  annual  re- 
port and  for  certified  copies,  as  provided  by  section  1972. 

Referred  to  in  20.55. 


HEALTH,  ACCIDENT,  AND  HEALTH  AND  ACCIDENT  INSURANCE 

Standard  accident  and  health  policy. 
Section  1960.  1.  On  and  after  the  first  day  of  January,  1914,  no 
policy  of  insurance  against  loss  or  damage  from  the  sickness,  or  the 
bodily  injury  or  death  of  the  insured  by  accident  shall  be  issued  or  de- 
livered to  any  person  in  this  state  until  a  copy  of  the  form  thereof  and 
of  the  classification  of  risks  and  the  premium  rates  pertaining  thereto 


1960—3  166  Ch.  89 

have  been  filed  with  the  commissioner  of  insurance;  nor  shall  it  be  so 
issued  or  delivered  until  the  expiration  of  thirty  days  after  it  has  been 
80  filed  unless  the  said  commissioner  shall  sooner  give  his  written  ap- 
proval thereto.  If  the  said  commissioner  shall  notify,  in  writing,  the 
company,  corporation,  association,  society  or  other  insurer  which  has 
filed  such  form  that  it  does  not  comply  with  the  requirements  of  law, 
specifying  the  reasons  for  his  opinion,  it  shall  be  unlawful  thereafter 
for  any  such  insurer  to  issue  any  policy  in  such  form. 

Conditions. 

2.  No  such  policy  shall  be  so  issued  or  delivered  (1)  unless  the  en- 
tire money  and  other  considerations  therefor  are  expressed  in  the 
policy;  nor  (2)  unless  the  time  at  which  the  insurance  thereunder 
takes  effect  and  terminates  is  stated  in  a  portion  of  the  policy  preced- 
ing its  execution  by  the  insurer;  nor  (3)  if  the  policy  purports  to  in- 
sure more  than  one  person;  nor  (4)  unless  every  printed  portion 
thereof  and  of  any  endorsements  or  attached  papers  shall  be  plainly 
printed  in  type  of  which  the  face  shall  not  be  smaller  than  ten-point; 
nor  (5)  unless  a  brief  description  thereof  be  printed  on  its  first  page 
and  on  its  filing  back  in  type  of  which  the  face  shall  be  not  smaller 
than  fourteen-point;  nor  (6)  unless  the  exceptions  of  the  policy  be 
printed  with  the  same  prominence  as  the  benefits  to  which  they  apply, 
provided,  however,  that  any  portion  of  such  policy  which  purports,  by 
reason  of  the  circumstances  under  which  a  loss  is  incurred,  to  reduce 
any  indemnity  promised  therein  to  an  amount  less  than  that  provided 
for  the  same  loss  occuring  under  ordinary  circumstances,  shall  be 
printed  in  bold-face  type  and  with  greater  prominence  than  any  other 
portion  of  the  text  of  the  policy. 

Standard  provisions. 

3.  Every  such  policy  so  issued  shall  contain  certain  standard  pro. 
visions,  which  shall  be  in  the  words  and  in  the  order  hereinafter  set 
forth  and  be  preceded  in  every  poacy  by  the  caption  "Standard  Pro- 
visions." In  each  such  standard  provision  wherever  the  word  "in- 
surer" is  used  there  shall  be  substituted  therefor  "company"  or  "cor- 
poration" or  "association"  or  "society"  or  such  other  word  as  will 
properly  designate  the  insurer.     Said  standard  provisions  shall  be: 

Reduction  of  indemnity. 
(1)  A  standard  provision  relative  to  the  contract  which  may  be  In 
either  of  the  following  two  forms:  Form  (A)  to  be  used  in  policies 
which  do  not  provide  for  reduction  of  indemnity  on  account  of  change 
of  occupation,  and  Form  (B)  to  be  used  in  policies  which  do  so  provide. 
If  Form  (B)  is  used  and  the  policy  provides  idemnity  against  loss 
from  sickness,  the  words  "or  contracts  sickness"  may  be  inserted 
therein  immediately  after  the  words  "in  the  event  that  the  insured  is 
injured."  (A)  :  —  (1)  This  policy  includes  the  endorsements  and  at- 
tached papers,  if  any,  and  contains  the  entire  contract  of  insurance. 


Ch.  89  167  1960—3 

No  reduction  shall  be  made  in  any  indemnity  herein  provided  by  reason 
o£  change  in  the  occupation  of  the  insured  or  by  reason  of  his  doing 
any  act  or  thing  pei'taining  to  any  other  occupation.  (B)  :  —  (1)  This 
policy  includes  the  endorsements  and  attached  papers,  if  any,  and  con- 
tains the  entire  contract  of  insurance  except  as  it  may  be  modified  by 
the  insurer's  classification  of  risks  and  premium  rates  in  the  event 
that  the  insured  is  injured  after  having  changed  his  occupation  to  one 
classified  by  the  insurer  as  more  hazardous  than  that  stated  in  the 
policy,  or  while  he  is  doing  any  act  or  thing  pertaining  to  any  occu- 
pation so  classified,  except  ordinary  duties  about  his  residence  or  while 
engaged  in  recreation,  in  which  event  the  insurer  will  pay  only  such 
portion  of  the  indemnities  provided  in  the  policy  as  the  premium 
paid  would  have  purchased  at  the  rate  but  within  the  limits  so  fixed 
by  the  insurer  for  such  more  hazardous  occupation.  If  the  law  of 
the  state  in  which  the  insured  resides  at  the  time  this  policy  is  issued 
requires  that  prior  to  its  issue  a  statement  of  the  premium  rates  and 
classification  of  risks  pertaining  to  it  shall  be  filed  with  the  state 
oflicial  having  supervision  of  insurance  in  such  state  then  the  premium 
rates  and  classification  of  risks  mentioned  in  this  policy  shall  mean 
only  such  as  have  been  last  filed  by  the  insurer  in  accordance  with 
such  law,  but  if  such  filing  is  not  required  by  such  law  when  they  shall 
mean  the  insurer's  premium  rates  and  classification  of  risks  last  made 
effective  by  it  in  such  state  prior  to  the  occurrence  of  the  loss  for 
which  the  insurer  is  liable. 

Changes  in  contract. 

(2)  A  standard  provision  relative  to  changes  in  the  contract,  which 
shall  be  in  the  following  form: 

(2)  No  statement  made  by  the  applicant  for  insurance  not  included 
herein  shall  avoid  the  policy  or  be  used  in  any  legal  proceeding  here- 
under. No  agent  has  authority  to  change  this  policy  or  to  waive 
any  of  its  provisions.  No  change  in  this  policy  shall  be  valid  unless 
approved  by  an  executive  officer  of  the  insurer  and  such  approval  is 
endorsed  hereon. 

Reinstatement  after  lapse. 

(3)  A  standard  provision  relative  to  reinstatement  of  policy  after 
lapse  which  may  be  in  either  of  the  three  following  forms:  Form  (A) 
tD  be  used  in  policies  which  insure  only  against  loss  from  accident; 
Form  (B)  to  be  used  in  policies  which  insure  only  against  loss  from 
sickness;  and  Form  (C)  to  be  used  in  policies  which  insure  against 
loss  from  both  accident  and  sickness. 

(A)  :  —  (3)  If  default  be  made  in  the  payment  of  the  agreed  premium 
for  this  policy,  the  subsequent  acceptance  of  a  premium  by  the  Insurer 
or  by  any  of  its  duly  authorized  agents  shall  reinstate  the  policy,  but 
only  to  cover  loss  resulting  from  accidental  injury  thereafter  sustained. 

(B)  : — (3)  If  default  be  made  in  the  payment  of  the  agreed  premium 
for  this  policy,  the  subsequent  acceptance  of  a  premium  by  the  insurer 


1960—3  168  Ch.  89 

or  by  any  of  its  duly  authorized  agents  shall  reinstate  the  policy  but 
only  to  cover  such  sickness  as  may  begin  more  than  ten  days  after 
the  date  of  such  acceptance. 

(C)  : — (3)  If  default  be  made  in  the  payment  of  the  agreed  premium 
for  this  policy,  the  subsequent  acceptance  of  a  premium  by  the  insurer 
or  by  any  of  its  duly  authorized  agents  shall  reinstate  the  policy  but 
only  to  cover  accidental  injury  thereafter  sustained  and  such  sickness 
as  may  begin  more  than  ten  days  after  the  date  of  such  acceptance. 

Time  of  notice  of  claim. 
(4)  A  standard  provision  relative  to  time  of  notice  of  claim  which 
may  be  in  either  of  the  three  following  forms:  Form  (A)  to  be  used 
in  policies  which  insure  only  against  loss  from  accident;  Form  (B)  to 
be  used  in  policies  which  insure  only  against  loss  from  sickness,  and 
Form  (C)  to  be  used  in  policies  which  insure  against  loss  from  both 
accident  and  sickness.  If  Form  (A)  or  Form  (C)  is  used  the  insurer 
may  at  its  option  add  thereto  the  following  sentence:  "In  event  of  acci- 
dental death  immediate  notice  thereof  must  be  given  to  the  insurer." 

(A)  : — (4)  Written  notice  of  injury  on  which  claim  may  be  based 
must  be  given  to  the  insurer  within  twenty  days  after  the  date  of  the 
accident  causing  such  injury. 

(B)  :  —  (4)  Written  notice  of  sickness  on  which  claim  may  be  based 
must  be  given  to  the  insurer  within  ten  days  after  the  commencement 
of  the  disability  from  such  sickness. 

(C)  :  —  (4)  Written  notice  of  injury  or  of  sickness  on  which  claim 
may  be  based  must  be  given  to  the  insurer  within  twenty  days  after 
the  date  of  the  accident  causing  such  injury  or  within  ten  days  after 
the  commencement  of  disability  from  such  sickness. 

Sufficiency  of  notice. 
(5)  A  standard  provision  relative  to  sufficiency  of  notice  of  claim 
which  shall  be  in  one  of  the  following  forms  and  in  which  the  insurer 
shall  insert  in  the  blank  space  such  office  and  its  location  as  it  may 
desire  to  designate  for  such  purpose  of  notice: 

(A)  :  — (5)  Such  notice  given  by  or  in  behalf  of  the  insured  or  bene- 
ficiary, as  the  case  may  be,  to  the  insurer  at or  to  any  author- 
ized agent  of  the  insurer,  with  particulars  sufficient  to  identify  the  in- 
sured, shall  be  deemed  to  be  notice  to  the  insurer.  Failure  to  give 
notice  within  the  time  provided  in  this  policy  shall  not  invalidate 
any  claim  if  it  shall  be  shown  not  to  have  been  reasonably  possible 
to  give  such  notice  and  that  notice  was  given  as  soon  as  was  reasonably 
possible. 

(B)  :  —  (5)  The  foregoing  paragraph  may  be  changed  by  inserting 
in  lieu  of  the  words  "any  authorized  agent  of  the  insurer,"  the  following 

" agent  of  the  insurer  at   "  and  by  filling  the  blank 

before  the  word  "agent"  with  a  designation  or  name  of  an  agent,  and 
by  filling  the  blank  after  the  word  "at"  with  a  post-office  address,  both 
to  be  sufficient  to  assure  the  delivery  of  mail  to  such  agent. 


Ch.  89  169  1960—3 

Forms  for  filing  proof  of  loss  to  be  furnished. 

(6)  A  standard  provision  relative  to  furnishing  forms  for  the  con- 
venience of  the  insured  in  submitting  proof  of  loss  as  follows: 

(6)  The  insurer  upon  receipt  of  such  notice,  will  furnish  to  the 
claimant  such  forms  as  are  usually  furnished  by  it  for  filing  proofs 
of  loss.  If  such  forms  are  not  so  furnished  within  fifteen  days  after 
the  receipt  of  such  notice  the  claimant  shall  be  deemed  to  have  com- 
plied with  the  requirements  of  this  policy  as  to  proof  of  loss  upon 
submitting  within  the  time  fixed  in  the  policy  for  filing  proofs  of  loss, 
written  proof  covering  the  occurence,  character  and  extent  of  the  loss 
for  which  claim  is   made. 

Filing  proof  of  loss. 

(7)  A  standard  provision  relative  to  filing  proof  of  loss  which  shall 
be  in  such  one  of  the  following  forms  as  may  be  appropriate  to  the 
indemnities  provided: 

(A)  : — (7)  Affirmative  proof  of  loss  must  be  furnished  to  the  in- 
surer at  its  said  ofllce  within  ninety  days  after  the  date  of  the  loss 
for  which  claim  is  made. 

(B)  :  —  (7)  Affirmative  proof  of  loss  must  be  furnished  to  the  in- 
surer at  Its  said  office  within  ninety  days  after  the  termination  of  the 
period  of  disability  for  which  the  company  is  liable. 

(C)  : — (7)  Affirmative  proof  of  loss  must  he  furnished  to  the  in- 
surer at  its  said  office  in  case  of  claim  for  loss  of  time  from  disability 
within  ninety  days  after  th6  termination  of  the  period  for  which  the 
insurer  is  liable,  and  in  case  of  claim  for  any  other  loss,  within  ninety 
days  after  the  date  of  such  loss. 

Examination  of  insured. 

(8)  A  standard  provision  relative  to  examination  of  the  person  of 
the  insured  and  relative  to  autopsy  which  shall  be  in  the  following 
form: 

(8)  The  insurer  shall  have  the  right  and  opportunity  to  examine  the 
person  of  the  insured  when  and  so  often  as  it  may  reasonably  require 
during  the  pendency  of  claim  hereunder,  and  also  the  right  and  oppor- 
tunity to  make  an  autopsy  in  case  of  death  where  it  is  not  forbidden 
by  law. 

Time  within  which  payment  to  be  made. 

(9)  A  standard  provision  relative  to  the  time  within  which  payments 
other  than  those  for  loss  of  time  on  account  of  disability  shall  be 
made,  which  provision  may  be  in  either  of  the  following  two  forms 
and  which  may  be  omitted  from  any  policy  providing  only  indemnity 
for  loss  of  time  on  account  of  disability.  The  insurer  shall  insert 
in  the  blank  space  either  the  word  "immediately"  or  appropriate  lan- 
guage to  designate  such  period  of  time,  not  more  than  sixty  days,  as 
it  may  desire;  Form  (A)  to  be  used  in  policies  which  do  not  provide 
indemnity  for  loss  of  time  on  account  of  disability  and  Form  (R)  to 
be  used  in  policies  which  do  so  provide. 


1960—3  170  Ch.  89 

(A)  :  —  (9)  All  indemnities  provided  in  this  policy  will  be  paid 
after  receipt  of  due  proof. 

(B)  : — (9)     All  indemnities  provided  in   this  policy  for  loss  other 

than  that  of  time  on  account  of  disability  will  be  paid   after 

receipt  of  proof. 

Periodical  payments  of  indemnity. 
(10)  A  standard  provision  relative  to  periodical  payments  of  indem- 
nity for  loss  of  time  on  account  of  disability,  which  provision  shall  be 
in  the  following  form,  and  which  may  be  omitted  from  any  policy  not 
providing  for  such  indemnity.  The  insurer  shall  insert  in  the  first 
b'.ank  space  of  the  form,  appropriate  language  to  designate  the  pro- 
portion of  accrued  indemnity  it  may  desire  to  pay,  which  proportion 
may  be  all  or  any  part  not  less  than  one-half,  and  in  the  second  blank 
space  shall  insert  any  period  of  time  not  exceeding  sixty  days: 

(10)  Upon  request  of  the  insured  and  subject  to  due  proof  of  loss 

accrued  indemnity  for  loss  of  time  on  account  of  disability 

will  be  paid  at  the  expiration  of  each during  the' continuance 

of  the  period  for  which  the  insurer  is  liable  and  any  balance  remaining 
unpaid  at  the  termination  of  such  period  will  be  paid  immediately  upon 
receipt  of  due  proof. 

Indemnity  payments. 

(11)  A  standard  provision  relative  to  indemnity  payments  which  may 
be  in  either  of  the  two  following  forms:  Form  (A)  to  be  used  in  policies 
which  designate  a  beneficiary  and  Form  (B)  to  be  used  in  policies 
which  do  not  designate  any  beneficiary  other  than  the  insured: 

(A)  :  —  (11)  Indemnity  for  loss  of  life  of  the  insured  is  payable  to 
the  beneficiary  if  surviving  the  insured,  and  otherwise  to  the  estate  of 
the  insured.  A\]  other  indemnities  of  this  policy  are  payable  to  the 
insured. 

(B)  :  —  (11)  All  the  indemnities  of  this  policy  are  payable  to  the 
insured. 

Cancellatlcn. 

(12)  A  standard  provision  providing  for  cancellation  of  the  policy 
at  the  instance  of  the  insured  which  shall  be  in  the  following  form: 

(12)  If  the  insured  shaF,  at  any  time  change  his  occupation  to  one 
classified  by  the  insurer  as  less  hazardous  than  that  stated  in  the 
policy,  the  insurer,  upon  written  request  of  the  insured,  and  surrender 
of  the  policy,  will  cancel  thf  same  and  return  to  the  insured  the  un- 
earned premium. 

Rights  of  beneficiary. 

(13)  A  standard  provision  relative  to  the  rights  of  the  beneficiary 
under  the  policy  which  shall  be  in  the  following  form  and  which  may 
be  omitted  from  any  policy  not  designating  a  beneficiary: 

(13)   Consent  of  the  beneficiary  shall  not   be  requisite  to  surrender 


Ch.  89 


171  1960- 


or  assignment  of  this  policy,  or  to  change  of  beneficiary,  or  to  any 
other  changes  in  the  policy. 

Time  limit;    suit. 

(14)  A  standard  provision  limiting  the  time  within  which  suit  may 
be  brought  upon  the  policy  as  follows: 

(14)  No  action  at  law  or  in  equity  shall  be  brought  to  recover  on 
this  policy  prior  to  the  expiration  of  sixty  days  after  proof  of  loss  has 
been  filed  in  accordance  with  the  requirements  of  this  policy,  nor  shall 
siich  action  be  brought  at  all  unless  brought  within  two  years  from 
the  expiration  of  the  time  within  which  proof  of  loss  is  required  by  the 
policy. 

Time    limitation,    notice    of   claim. 

(15)  A  standard  provision  relative  to  time  limitations  of  the  policy 
as  follows: 

(15)  If  any  time  limitation  of  this  policy  with  respect  to  giving  notice 
of  claim  or  furnishing  proof  of  loss  is  less  than  that  permitted  by  the 
law  of  the  state  in  which  the  insured  resides  at  the  time  this  policy  is 
issued,  such  limitation  is  hereby  extended  to  agree  with  the  minimum 
period  permitted  by  such  law. 

Conditions  prohibited. 

4.  No  such  policy  shall  be  so  issued  or  delivered  which  contains  any 
provision  (1)  relative  to  cancellation  at  the  instance  of  the  insurer; 
or,  (2)  limiting  the  amount  of  indemnity  to  a  sum  less  than  the  amount 
stated  in  the  policy  and  for  which  the  premium  has  been  paid;  or,  (3) 
providing  for  the  deduction  of  any  premium  from  the  amount  paid  in 
settlement  of  claim;  or,  (4)  relative  to  other  insurance  by  the  same 
insurer;  or,  (5)  relative  to  the  age  limits  of  the  policy;  unless  such 
provisions  which  are  hereby  designated  as  optional  standard  provisions, 
shall  be  in  the  words  and  in  the  order  in  which  they  are  hereinafter  set 
forth,  but  the  insurer  may  at  its  option  omit  from  the  policy  any  such 
optional  standard  provision.  Such  optional  standard  provisions  if  in- 
serted in  the  policy  shall  immediately  succeed  the  standard  provisions 
named  in  subsection  3  of  this  section. 

Optional  standard  provisions;    cancellation  by  insurer. 
(1)  An  optional  standard  provision  relative  to  cancellation  of  the 
policy  at  the  instance  of  the  insurer  as  follows: 

(16)  The  insurer  may  cancel  this  policy  at  any  time  by  written 
notice  delivered  to  the  insured  or  mailed  to  his  last  address  as  shown 
by  the  records  of  the  insurer  together  with  cash  or  the  insurer's  check 
for  the  unearned  portion  of  the  premiums  actually  paid  by  the  insured, 
and  such  cancellation  shall  be  without  prejudice  to  any  claim  orig- 
inating prior  thereto. 


1960—4  172  Ch.  89 

Other  insurance. 

(2)  An  optional  standard  provision  relative  to  reduction  of  the 
amount  of  indemnity  to  a  sum  less  than  that  stated  in  the  policy  as 
follows: 

(17)  If  the  insured  shall  carry  with  another  company,  corporation, 
association  or  society  other  insurance  covering  the  same  loss  without 
giving  written  notice  to  the  insurer,  then  in  that  case  the  insurer 
shall  he  liable  only  for  such  portion  of  the  indemnity  promised  as  the 
said  indemnity  bears  to  the  total  amount  of  like  indemnity  in  all 
policies  covering  such  loss,  and  for  the  return  of  such  part  of  the 
premium  paid  as  shall  exceed  the  pro  rata  for  the  indemnity  thus 
determined. 

Deduction  of  premium  upon  settlement  of  claims. 

(3)  An  optional  standard  provision  relative  to  deduction  of  premium 
upon  settlement  of  claim  as  follows: 

(18)  Upon  the  payment  of  claim  hereunder  any  premium  then  due 
and  unpaid  or  covered  by  any  note  or  written  order  may  be  deducted 
therefrom. 

Other  insurance  by  same  insurer. 

(4)  An  optional  standard  provision  relative  to  other  insurance  by 
the  same  insurer  which  shall  be  in  such  one  of  the  following  forms  as 
may  be  appropriate  to  the  indemnities  provided,  and  in  the  blank 
spaces  of  which  the  insurer  shall  insert  such  upward  limits  of  indem- 
nity as  are  specified  by  the  insurer's  classification  of  risks,  filed  as 
required  by  this  act. 

(A)  :  —  (19)  If  a  like  policy  or  policies,  previously  issued  by  the 
insurer  to  the  insured  be  in  force  concurrently  herewith,  making  the 

aggregate  indemnity  in  excess  of  $ the  excess  insurance  shall 

be  void  and  all  premiums  paid  for  such  excess  shall  be  returned  to  the 
insured. 

(B)  :  —  (19)  If  a  like  po'.icy  or  policies,  previously  issued  by  the 
insurer  to  the  insured  be  in  force  concurrently  herewith,  making  the 
aggregate  indemnity  for  loss  of  time  on  account  of  disability  in  excess 

of  $ weekly,  the  excess  insurance  shall  be  void  and  all  premiums 

paid  for  such  excess  shall  be  returned  to  the  insured. 

(C)  :  —  (19)  If  a  like  policy  or  poMcies,  previously  issued  by  the 
insurer  to  the  insured  be  in  force  concurrently  herewith,  making  the 
aggregate  indemnity  for  loss  other  than  that  of  time  on  account  of 

disability  in  excess  of  $ ,  or  the  aggregate  indemnity  for  loss  of 

time  on  account  of  disability  in  excess  of  $ weekly  (or  substitute 

the  word  "monthly")  the  excess  insurance  of  either  kind  shall  be 
void  and  all  premiums  paid  for  such  excess  shall  be  returned  to  the 
insured. 


Ch.  89  173  1960—9 

Age  limits. 

(5)  An  optional  standard  provision  relative  to  the  age  limits  of  the 
policy  which  shall  be  in  the  following  form  and  in  the  blank  spaces 
of  which  the  insurer  shall  insert  such  number  of  years  as  it  may  elect: 

(20)   The   insurance  under  this  policy  shall   not  cover   any  person 

under  the  age  of   years  nor  over  the  age  of  years. 

Any  premium  paid  to  the  insurer  for  any  period  not  covered  by  this 
policy  will  be  returned  upon  request. 

Contradictory  provisions  prohibited. 
5.  No  such  policy  shall  be  so  issued  or  delivered  if  it  contains  any 
provision  contradictory,  in  whole  or  in  part,  of  any  of  the  provisions 
hereinbefore  in  this  act  designated  as  "Standard  Provisions"  or  as 
"Optional  Standard  Provisions;"  nor  shall  any  indorsements  or  at- 
tached papers  vary,  alter,  extend,  be  used  as  a  substitute  for,  or  in 
any  way  conflict  with  any  of  the  said  "Standard  Provisions"  or  the  said 
"Optional  Standard  Provisions;"  nor  shall  such  policy  be  so  issued 
or  delivered  if  it  contains  any  provision  purporting  to  make  any  portion 
of  the  charter,  constitution  or  by-laws  of  the  insurer  a  part  of  the 
policy  unless  such  portion  of  the  charter,  constitution  or  by-laws  shall 
be  set  forth  in  the  policy,  but  this  prohibition  shall  not  be  deemed  to 
apply  to  any  statement  of  rates  or  classification  of  risks  filed  with  the 
commissioner  of  insurance  in  accordance  with  the  provisions  of  this 
act. 

Waiver  of  rights. 

7.  The  acknowledgment  by  an  insurer  of  the  receipt  of  notice  given 
under  any  policy  covered  by  this  act,  or  the  furnishing  of  forms  for 
filing  proofs  of  loss,  or  the  acceptance  of  such  proofs,  or  the  investi- 
gation of  any  claim  thereunder  shall  not  operate  as  a  waiver  of  any 
o?  the  rights  of  the  insurer  in  defense  of  any  claim  arising  under  such 
policy. 

Alteration. 

8.  No  alteration  of  any  written  application  for  insurance  by  erasure, 
insertion  or  otherwise,  shall  be  made  by  any  person  other  than  the 
applicant  without  his  written  consent,  and  the  making  of  any  such 
alteration  without  the  consent  of  the  applicant  shall  be  a  misdemeanor. 
If  such  alteration  shall  ^be  made  by  any  officer  of  the  insurer,  or  by  any 
employe  of  the  insurer  with  the  insurer's  knowledge  or  consent,  then 
such  act  shall  be  deemed  to  have  been  performed  by  the  insurer  there- 
after issuing  the  policy  upon  such  altered  application. 

Other  forms  valid. 

9.  A  policy  Issued  in  violation  of  this  act  shall  be  held  valid  but 
shall  be  construed  as  provided  in  this  act  and  when  any  provision  in 
such  policy  is  in  conflict  with  any  provision  of  this  act  the  rights. 


1960—12  174  Ch.  89 

duties  and  obligations  of  ttie  insurer,  the  policyholder  and  the  bene- 
ficiary shall  be  governed  by  the  provisions  of  this  act. 

Reciprocal  provisions  as  to  foreign  forms. 
10.  The  policies  of  insurance  against  accidental  bodily  injury  or 
sickness  issued  by  any  insurer  not  organized  under  the  laws  of  this 
state  may  contain,  when  issued  in  this  state,  any  provision  which 
the  law  of  the  state,  territory  or  district  of  the  United  States  under 
which  the  insurer  is  organized,  prescribes  for  insertion  in  such  policies, 
and  the  policies  of  insurance  against  accidental  bodily  injury  or  sick- 
ness issued  by  an  insurer  organized  under  the  laws  of  this  state  may 
contain,  when  issued  or  delivered  in  any  other  state,  territory,  district 
or  country,  any  provision  required  by  the  laws  of  the  state,  territory, 
district  or  country  in  which  the  same  are  issued,  anything  in  this  act 
to  the  contrary  notwithstanding. 

Liability   and  workmen's  compensation    insurance   excepted;     sup- 
plemental life  contracts;    fraternals;    railroad  ticket  policies. 

12.  (1)  Nothing  in  this  act,  however,  shall  apply  to  or  affect  any 
policy  of  liability  or  workmen's  compensation  insurance  or  any  general 
or  blanket  policy  of  insurance  issued  to  any  municipal  corporation 
o:  department  thereof,  or  to  any  corporation,  copartnership,  associa- 
tion or  individual  employer,  police  or  fire  department,  underwriter's 
corps,  salvage  bureau,  or  like  associations  or  organizations,  where  the 
ofiicers,  members  or  employes  or  classes  or  departments  thereof  are 
insured  for  their  individual  benefit  against  specified  accidental  bodily 
injuries  or  sickness  while  exposed  to  the  hazards  of  the  occupation 
or  otherwise  in  consideration  of  a  premium  intended  to  cover  the 
risks  of  ail  the  persons  insured  under  such  policy. 

(2)  Nothing  in  this  act  shall  apply  to  or  in  any  way  affect  contracts 
of  life  or  endowment  insurance  or  contracts  supplemental  thereto, 
where  such  contracts  or  supplemental  contracts  contain  no  provisions 
relating  to  accident  or  health  insurance  except  accidental  death 
benefits  and  except  such  as  operate  to  safeguard  such  insurance 
against  lapse,  or  to  give  a  special  surrender  value  or  an  annuity  pro- 
viding for  payments  not  exceeding  one  per  cent  per  month  of  the 
face  amount  of  the  policy  during  the  lifetime  of  the  Insured,  with  or 
without  reduction  of  the  sum  insured,  in  the  event  that  the  insured 
shall  be  totally  and  permanently  disabled  from  any  cause;  provided 
that  no  such  supplemental  contract  shall  be  issued  or  delivered  to 
any  person  in  this  state  unless  and  until  a  copy  of  the  form  thereof 
has  been  submitted  to  and  approved  by  the  commissioner  of  insurance, 
under  such  reasonable  rules  and  regulations  as  he  shall  make  con- 
cerning the  provisions  in  such  contracts  and  their  submission  to  and 
approval  by  him. 

(3)  Nothing  in  this  act  shall  apply  to  or  in  any  way  affect  fraternal 
benefit  societies. 


Ch.  89  175  1966—33 

(4).  The  provisions  of  this  act  contained  in  clause  (5)  of  subsection 
2  and  clauses  (2),  (3),  (8)  and  (12)  of  subsection  3  may  be  omitted 
from  railroad  ticket  policies  sold  only  at  railroad  stations  or  at  railroad 
ticket  offices  by  railroad  employes. 

Referred  to  in  lS97a  (S). 

Penalty. 

13.  Any  company,  corporation,  association,  society  or  other  insurer 
or  any  officer  or  agent  thereof,  which  or  who  issues  or  delivers  to  any 
person  in  this  state  any  policy  in  wilful  violation  of  the  provisions  of 
this  act  shall  be  punished  by  a  fine  of  not  more  than  one  hundred 
dollars  for  each  offense,  and  the  commissioner  of  insurance  may  re- 
voke the  license  of  any  company,  corporation,  association,  society  or 
other  insurer  of  another  state  or  country,  or  of  the  agent  thereof, 
which  or  who  wilfully  violates  any  provision  of  this  act. 

Approval  by  commissioner  of  insurance. 

14.  Any  policy  covered  by  this  act,  the  form  of  which  has  received 
the  approval  of  the  commissioner  of  insurance  may  be  issued  or  deliv- 
ered in  this  state  on  and  after  the  first  day  of  October,  1913. 

Extension  for  domestic  policy  forms. 

15.  Any  form  of  policy  which  shall  have  been  filed  as  required  by 
law  and  used  in  this  state  by  any  domestic  insurance  company  on  or 
before  the  first  day  of  May,  1913,  may  be  issued  in  this  state  up  to  the 
first  day  of  July,  1915. 

Referred  to  in  2637. 


CASUALTY  OR   SURETYSHIP  COMPANIES 

Powers  of  suretyship  company. 

Section  1966 — 33.  Whenever  any  bond,  recognizance,  obligation, 
stipulation  or  undertaking  is  by  law  or  the  rules  or  regulations  of 
any  board,  body  or  organization  required  or  permitted  to  be  made, 
given,  tendered  or  filed  for  the  security  or  protection  of  any  person, 
persons,  corporation,  state,  county,  municipality  or  other  organization 
whatsoever,  conditioned  for  the  doing  or  not  doing  of  any  thing  in 
any  such  instrument  specified,  any  and  all  heads  of  departments, 
public  officers,  state,  county,  town  or  municipal,  and  any  and  all 
boards,  municipalities,  committees  thereof,  courts  and  judges  now  or 
hereafter  required  or  permitted  to  accept  or  approve  the  sufficiency 
of  any  such  bond,  recognizance,  obligation,  stipulation  or  undertaking 
may  accept  and  approve  the  same  whenever  the  same  is  executed  or 
the  conditions  thereof  are  guaranteed  solely  by  a  corporation  author- 
ized to  guarantee  the  fidelity,  of  persons  holding  places  of  public  or 
private  trust  and  the  performance  of  contracts,  other  than  of  in- 
surance, and  to  execute  and  guarantee  bonds  and  undertakings  re- 
quired or  permitted  in  actions  or  proceedings  or  by  law  allowed;  and 


1966— 33b  176  Ch.  89 

whenever  any  such  bond,  recognizance,  obligation,  stipulation  or  un- 
dertaking is  so  required  or  permitted  to  be  made,  given,  tendered  or 
filed  with  one  surety  or  with  two  or  more  sureties  the  execution  of 
the  same  or  the  guaranteeing  of  the  performance  of  the  conditions 
thereof  shall  be  sufficient  when  executed  or  guaranteed  solely  by 
such  corporation  so  authorized,  and  shall  be  in  all  respects  a  full  and 
complete  compliance  with  every  requirement  of  every  law,  ordinance, 
rule  or  regulation  that  such  bond,  undertaking,  recognizance,  obliga- 
tion or  stipulation  shall  be  executed  or  guaranteed  by  one  or  more 
sureties,  or  that  such  sureties  shall  be  residents,  householders  or  free- 
holders; and  any  and  all  heads  of  departments,  courts,  judges,  boards, 
municipalities  or  committees  thereof,  and  any  and  all  public  officers, 
state,  county,  town  or  municipal,  whose  duty  it  may  be  to  accept  or 
approve  the  sufficiency  of  any  such  instrument,  may  accept  and  approve 
the  same  when  executed  or  guaranteed  solely  by  such  a  corporation; 
and  all  such  corporations  may  execute  or  guarantee  such  bonds,  recog- 
nizances, stipulations,  obligations  or  undertakings,  whether  given 
under  the  laws  of  this  state  or  of  the  United  States,  or  of  any  other 
state  or  country. 

Section  J966 — 33  is  refeiTed  to  in  section  1966 — 35. 

Corporation  to  guarantee  personal  fidelity. 
Section  1966 — 33a.  A  corporation  authorized  by  law  and  by  its 
charter  so  to  do  may  transact  the  business  of  guaranteeing  the  fidelity 
of  or  becoming  surety  for  (a)  persons  holding  positions  of  public  or 
private  trust,  (b)  the  performance  of  any  act,  duty  or  obligation  or 
the  refraining  from  any  act,  (c)  the  performance  of  any  contract  other 
than  one  of  insurance,  (d)  insurance  companies  on  bonds  required 
by  states  or  municipalities  as  a  condition  of  transacting  business 
therein,  (e)  Indemnifying  banks,  bankers,  brokers,  financial  or 
moneyed  associations,  or  financial  or  moneyed  corporations,  against 
the  loss  of  any  bills  of  exchange,  notes,  drafts,  acceptance  of  drafts, 
bonds,  securities,  evidence  of  debt,  credits,  deeds,  mortgages,  docu- 
ments, currency  and  money,  except  as  against  loss  caused  by  marine 
risks  or  risks  of  transportation  or  navigation,  (f)  guaranteeing  any 
federal  land  bank  against  loss  by  reason  of  defective  title  to  or  en- 
cumbrances on  real  property  on  which  any  such  federal  land  bank 
may  make  a  loan  secured  by  a  mortgage;  and  may  execute  bonds, 
undertakings  and  indemnities  required  or  permitted  or  by  law  al- 
lowed. Such  a  corporation  may  also  reinsure  against  loss  arising  out 
of  such  obligations.  Such  obligations  shall  be  known  and  treated  as 
suretyship  obligations,  and  such  business  shall  be  known  as  the 
surety  business. 

Guarantees  need  not  be  under  seal;    how  authenticated. 

Section    1966 — 33b.     Whenever  a   suretyship   obligation   is   required 

or  permitted  or  by  law  allowed,  such  obligation  may  be  executed  by 

a  corporation  authorized  by  the  laws  of  this  state  and  by  its  charter 

to  execute  such  obligation;  and  such  corporations  are  authorized  and 


Ch.  89  177  1966— 33d 

empowered  to  execute  all  such  obligations,  which,  however,  need  not 
be  under  the  seal  of  such  corporations  unless  by  law  specially  required; 
and  the  execution  by  any  such  corporation  of  such  obligation  by  an 
officer,  attorney-in-fact  or  other  representative  authorized  to  execute 
the  same  shall  be  sufficient  and  shall  be  accepted  as  and  be  a  full 
compliance  with  every  requirement  that  such  obligation  be  executed 
by  a  surety  or  sureties,  or  that  such  surety  or  sureties  be  residents, 
householders  or  freeholders,  or  possess  any  other  qualification;  and, 
the  certificate  of  the  commissioner  of  insurance  authorizing  such 
corporation  to  transact  the  surety  business  in  this  state,  while  in 
force  and  unrevoked,  shall  be  conclusive  evidence  of  the  solvency  of 
such  corporation  and  of  its  sufficiency  as  surety  and  of  the  propriety 
of  accepting  and  approving  it  as  such,  and  be  in  lieu  of  any  justifica- 
tion by  such  corporation. 

Domestic  corporations,  capital  and  surplus  required. 
Section  1966 — 33c.  No  domestic  corporation  hereafter  organized 
shall  be  authorized  to  commence  the  transaction  of  the  surety  busi- 
ness in  this  state  unless  it  has  a  capital  stock  of  at  least  two  hun- 
dred and  fifty  thousand  dollars  and  a  surplus  of  at  least  one  hundred 
and  twenty-five  thousand  dollars,  both  fully  paid  in  cash.  No  domestic 
insurance  corporation  authorized  in  this  state  to  transact  other 
classes  of  insurance  shall  hereafter  be  authorized  to  transact  the 
surety  business  unless  in  addition  to  the  capital  stock  and  surplus 
requirements  for  the  classes  of  insurance  being  transacted  by  such 
corporation,  it  shall  also  have  a  capital  of  at  least  two  hundred  and 
fifty  thousand  dollars  and  a  surplus  of  at  least  one  hundred  and  twen- 
ty-five thousand  dollars. 

Foreign  corporation,  capital  and  surplus  required. 
Section  1966 — 33d.  1.  No  corporation  organized  under  the  laws  of 
any  other  state,  district,  territory  or  possession  of  the  United  States 
shall  hereafter  be  authorized  to  transact  the  surety  business  in  this 
state  unless  at  the  time  of  its  organization  it  had  the  capital  and 
surplus  required  of  a  similar  domestic  corporation,  or,  subsequent  to 
its  organization  and  prior  to  its  application  to  transact  the  surety 
business  in  this  state,  it  had  acquired  a  capital  and  surplus  equal  to 
that  required  of  a  similar  domestic  corporation,  and  unless  at  the 
time  of  its  application  for  admission  in  this  state  it  has  an  unimpaired 
capital  at  least  equal  to  that  required  of  a  similar  domestic  corpora- 
tion. No  corporation  organized  under  the  laws  cf  a  country  other 
than  the  United  States  shall  hereafter  be  authorized  to  transact  the 
surety  business  in  this  state  unless  it  shall  satisfy  the  commissioner 
of  insurance  of  this  state  that  it  has  on  deposit  with  American  trustees, 
or  with  the  proper  officer  or  officers  of  a  state  or  states  of  the  United 
States,  or  both,  satisfactory  securities  equal  in  value  to  the  total  of 
the  capital  and  surplus  required  of  a  similar  domestic  corporation  at 
the  time  of  its  first  authorization  in  this  state,  and  that  such  securities 


1966— 33e  178  Ch.  89 

are  held  in  trust  for  the  fulfillment  by  such  company  of  all  its  obliga- 
tions within  the  United  States. 

2.  Each  such  foreign  corporation,  when  applying  for  admission  to 
transact  the  surety  business  in  this  state,  shall  file  with  the  commis- 
sioner of  insurance  (a)  a  copy  of  its  charter  or  deed  of  trust  or 
settlement,  (b)  a  verified  detailed  statement  of  all  the  items,  matter 
and  other  information  in  regard  to  its  affairs  required  by  law  to  be 
stated  in  the  annual  report  of  a  similar  domestic  corporation  made  as 
the  commissioner  may  require,  (c)  an  agreement,  signed  by  the 
proper  officers  of  the  corporation,  that  it  will  not,  while  authorized  to 
do  business  in  this  state,  transact  any  business  therein  which  a  similar 
domestic  corporation  is  prohibited  from  transacting,  (d)  a  written 
appointment  of  the  commissioner  of  insurance  to  be  the  true  and 
lawful  attorney  of  such  corporation  in  and  for  this  state,  upon  whom 
all  lawful  process  in  any  action  or  proceeding  against  the  corporation 
may  be  served  to  the  same  effect  as  if  it  were  a  domestic  corporation. 
It  shall  be  the  duty  of  the  commissioner  of  insurance  to  transmit 
forthwith  to  such  corporation  at  its  home  office  or  its  principal  ofllce 
in  the  United  States  a  true  copy  of  any  process  so  served. 

3.  No  such  foreign  corporation  shall  begin  the  transaction  of  its 
business  until  the  commissioner  of  insurance  shall  issue  to  such  cor- 
poration a  certificate  of  authority  specified  in  section  1966 — 33f  of 
this  act. 

Domestic  and  foreign  corporation  required  to  deposit  securities. 

Section  1966 — 33e.  1.  No  domestic  corporation  shall  hereafter  be 
authorized  to  transact  the  surety  business  in  this  state  unless  it  shall 
deposit  and  keep  on  deposit  with  the  commissioner  of  insurance  sat- 
isfactory securities  worth,  at  their  market  value,  noi  less  than  one 
hundred  thousand  dollars,  and,  in  case  such  corporation  transacts 
such  business  in  one  or  more  other  states,  it  shall  deposit  other 
securities,  so  that  its  total  deposit  shall  be  worth,  at  their  market 
value,  at  least  two  hundred  and  fifty  thousand  dollars.  No  corpora- 
tion incorporated  under  the  laws  of  any  other  state,  district,  territory 
cr  possession  of  the  United  States  shall  be  authorized  to  transact  the 
surety  business  in  this  state  unless  such  corporation  shall  satisfy 
the  commissioner  of  insurance  that  it  has  on  deposit  with  the  proper 
officer  or  officers  of  a  state  or  states,  district,  territory  or  possession 
of  the  United  States,  satisfactory  securities  worth,  at  their  market 
value,  at  least  two  hundred  and  fifty  thousand  dollars.  The  securities 
so  deposited  in  this  state  or  elsewhere  shall  be  held  in  trust  for  the 
fulfillment  by  the  depositing  corporation  of  all  of  its  obligations  within 
the  United  States.  No  deposit  shall  be  required  of  any  such  corpora- 
tion organized  under  the  laws  of  any  other  country,  other  than  the 
deposit  required  by  section  1966 — 33d  hereof. 

2.  No  additional  or  different  deposit  shall  be  required  of  an  insur- 
ance company  transacting  the  surety  business  and  other  classes  of 
insurance  as  a  condition  of  its  engaging  in  the  surety  business,  pro- 
vided that  the  sureties  deposited  in  this  state  or  elsewhere  shall  be 


Ch.  89  179  1966—33/ 

worth,  at  their  market  value,  the  sum  herein  specified — dependent  on 
the  doing  of  business  in  this  or  one  or  more  other  states,  and  such 
securities  are  held  in  trust  for  the  fulfillment  by  the  depositing  corpor- 
ation of  all  of  its  contracts,  whether  of  insurance  or  of  suretyship, 
within  the  United  States. 

3.  The  securities  deposited  pursuant  to  this  section  shall,  except 
as  herein  otherwise  provided,  be  held,  exchanged,  withdrawn,  dis- 
posed of  and  the  interest  therefrom  be  paid  to  the  corporation  making 
the  deposit  provided  the  securities  substituted  for  those  exchanged  or 
disposed  of  shall  not  decrease  the  total  market  value  of  the  securities 
on  deposit  below  the  sum  of  one  hundred  thousand  dollars,  or  below 
the  sum  of  two  hundred  fifty  thousand  dollars,  as  the  case  may  be. 

Certificate  or  license  to  do  business. 
Section  1966 — 33f.  When  the  commissioner  of  insurance  shall  be 
satisfied,  either  by  the  papers  filed  or  by  such  examination  as  he 
shall  make,  that  any  corporation  having  the  power  to  transact  the 
surety  business  has  fully  complied  with  and  that  it  has  the  capital 
and  surplus,  earned  or  paid  in,  specified  in  the  preceding  sections 
of  this  act,  he  shall  issue  to  it  a  certificate  under  his  hand  and  of- 
ficial seal  authorizing  it  to  transact  in  this  state  the  business  of 
corporate  suretyship  as  defined  in  section  1966 — 33a  hereof,  and 
certifying  that  it  is  qualified  to  become  and  be  accepted  as  surety 
or  guarantor  on  all  bonds,  undertakings  or  other  obligations  speci- 
fied in  section  1966 — 33a  of  this  act;  provided,  however,  that  if  such 
corporation  is  also  authorized  to  exercise  insurance  powers,  author- 
ity to  exercise  such  powers  and  suretyship  powers  may  be  included 
in  one  certificate. 

2.  The  certificate  issued  to  such  a  corporation  not  organized  under 
the  laws  of  this  state  shall  not  remain  in  force  for  a  longer  period 
than  one  year  and  all  such  certificates  shall  expire  on  the  30th  day 
of  April  next  following  the  date  of  issue. 

3.  The  statements  required  by  subdivision  two  of  section  1966 — 33d 
of  this  act  to  be  filed  in  the  office  of  the  commissioner  of  insurance 
before  a  certificate  of  authority  is  granted  to  such  a  corporation. 
Such  certificate  may  be  renewed  from  year  to  year  in  such  manner 
as  the  commissioner  of  insurance  may  require;  and  the  commissioner 
of  insurance  shall  have  the  same  power  to  refuse  to  issue  any  renewal 
certificate  that  he  has  to  an  original  certificate. 

4.  Whenever,  in  the  judgment  of  the  commissioner  of  insurance, 
it  will  best  promote  the  interests  of  the  people  of  this  state,  he  may, 
after  a  hearing  on  not  less  than  thirty  days'  notice,  revoke  a  certi- 
ficate issued  to  such  a  domestic  or  foreign  corporation  prior  to  its 
expiration  under  this  section;  provided  that  the  action  of  the  com- 
missioner of  Insurance  In  revoking  such  certificate  shall  not  take 
effect  until  thirty  days  after  the  service  of  notice  of  such  revocation 
at  its  home  office  or  principal  office  in  the  United  States.  The  action 
of  the  commissioner  of  insurance  in  refusing  to  issue  or  renew,  or  in 
revoking,  a  certificate  of  authority,  as  provided  in  this  section,  shall 


1966— 33g  180  Ch.  89 

be  subject  to  review  by  the  courts;  with,  if  so  ordered,  a  suspension 
of  the  effect  of  such  refusal  or  revocation  pending  decision  on  such 
review. 

Persons  and  corporations  authorized  to  make  rates  must  file  proof 
of  authority. 

Section  1966 — 33g.  1.  Every  corporation,  association  or  bureau 
which  now  exists  or  hereafter  may  be  formed,  and  every  person  who 
maintains  or  hereafter  may  maintain  a  bureau  or  oflSce,  for  the  pur- 
pose of  suggesting,  approving  or  making  rates  on  suretyship  obliga- 
tions to  be  effective  in  this  state  and  to  be  used  by  more  than  one 
corporation,  shall  file  with  the  commissioner  of  insurance  a  copy  of 
the  articles  of  agreement,  association  or  incorporation,  and  the  by- 
laws and  all  amendments  thereto  under  which  such  person,  corpor- 
ation, association  or  bureau  operates  or  proposes  to  operate,  to- 
gether with  his  or  its  business  address  and  a  list  of  members  repre- 
sented by  him  or  it,  as  well  as  such  other  information,  concerning 
such  rating  organization  and  its  operations  as  may  be  required  by 
the  commissioner. 

2.  Every  such  person,  corporation,  association  or  bureau,  "whether 
before  or  after  the  filing  of  the  information  specified  in  the  last  pre- 
ceding paragraph,  shall  be  subject  to  the  visitation,  supervision  and 
examination  of  the  commissioner  of  insurance,  who  shall  cause  to 
be  made  an  examination  thereof  as  often  as  he  deems  it  expedient, 
and  at  least  once  in  three  years. 

3.  Every  such  person,  corporation,  association,  bureau  or  any  cor- 
poration authorized  to  transact  surety  business  in  this  state,  shall 
file  with  the  commissioner  of  insurance,  whenever  he  may  call  there- 
for, any  and  every  schedule  of  rates  or  such  other  information  con- 
cerning such  rates  as  may  be  suggested,  approved  or  made  by  any 
such  rating  organization  or  surety  corporation. 

4.  Any  two  or  more  corporations  transacting  the  surety  business  in 
this  state,  may  jointly  employ  for  the  computing  or  making  of  sched- 
ules of  rates  and  the  amendments  thereto,  the  services  of  such  expert 
or  experts  as  they  may  deem  advisable  for  such  purpose. 

5.  No  such  person,  corporation,  association  or  bureau,  or  any  cor- 
poration authorized  to  transact  the  surety  business  in  this  state, 
shall  fix  or  make  any  rate  or  schedule  of  rates,  or  charge  a  rate  on 
suretyship  obligations  which  discriminates  unfairly  between  risks 
within  this  state  of  essentially  the  same  hazard.  Whenever  it  is 
made  to  appear  to  the  satisfaction  of  the  commissioner  of  insurance 
that  such  discrimination  exists,  he  may,  after  a  full  hearing  either 
before  himself  or  before  a  salaried  employe  of  the  insurance  depart- 
ment whose  report  he  may  adopt,  order  such  discrimination  removed; 
and  all  such  persons,  corporations,  associations  or  bureaus  affected 
thereby  shall  immediately  comply  therewith;  nor  shall  such  persons, 
corporations,  associations  or   bureaus  remove  such   discrimination  by 


Ch.  89  181  1966— 33h 

increasing  the  rate  on  any  risk  or  class  of  risks  affected  by  such 
order  unless  it  is  made  to  appear  to  the  satisfaction  of  the  commis- 
sioner of  insurance  that  such  increase  is  justifiable. 

6.  No  officer,  agent  or  other  representative  of  such  a  corporation, 
authorized  to  transact  the  surety  business  in  this  state,  and  no  surety 
broker,  shall,  as  to  any  such  surety|hip  obligation  effective  or  to  be 
effective  in  this  state  and  as  an  inducement  to  securing  the  same,  or 
after  such  an  obligation  has  been  executed,  whether  with  or  without 
the  knowledge  of  such  corporation,  pay,  allow  or  give,  or  offer  to  pay, 
allow  or  give,  directly  or  indirectly,  any  rebate,  discount  or  reduction 
from  the  premium  rate  fixed  in  compliance  with  the  next  preceding 
paragraph,  nor  any  special  favor  or  advantage  in  the  terms,  credits 
or  allowances  therein  contained;  nor  shall  any  such  person  or  cor- 
poration promise  or  give,  directly  or  indirectly,  as  an  inducement  to 
such  suretyship  obligation  or  in  connection  therewith,  anything  of 
value  whatsoever,  other  than  stated  or  indicated  in  the  written  evi- 
dence of  such  obligation;  nor  shall  any  surety  broker,  his  agent  or 
representative,  or  any  other  person,  directly  or  indirectly,  either  by 
sharing  commissions  or  in  any  manner  whatsoever,  pay,  allow  or  give, 
or  offer  to  pay,  allow  or  give  to  the  principal  in  such  suretyship  obli- 
gation, or  to  any  employe  of  such  principal  as  inducement  to  such 
suretyship  obligation,  or  after  the  same  shall  have  been  effected, 
any  rebate  from  the  premium,  or  anything  of  value  whatsoever  not 
stated  in  the  written  evidence  of  such  obligation;  this  section  shall 
not  prevent  any  such  corporation  or  other  insurer,  or  his  agent  or 
it!?  agents,  from  paying  commissions  to  a  broker,  who  shall  have 
negotiated  for  the  suretyship  obligation,  nor  shall  this  section  prevent 
any  broker  from  sharing  or  dividing  commissions  earned  or  received 
by  him  with  any  other  broker  or  brokers  who  shall  have  aided  him 
in  respect  to  the  suretyship  obligation  for  the  negotiation  of  which 
such  commission  shall  have  been  earned  or  paid. 

7.  Any  person,  partnership,  association  or  corporation  violating  any 
of  the  provisions  of  this  section  shall,  upon  conviction  thereof,  in  ad- 
dition to  any  other  penalty  by  law  provided,  be  punished  by  a  fine 
of  not  less  than  five  hundred  dollars  or  more  than  one  thousand  dol- 
lars, or  by  imprisonment  for  not  more  than  three  months,  or  by  both 
such  penalties  in  the  discretion  of  the  court. 

Person   guaranteed    may   deposit  funds   in    bank   for   protection   of 
surety  company. 

Section  1966 — 33h.  Any  corporation  transacting  the  surety  business 
may  contract  for  security  for  any  suretyship  obligation,  and  any  re- 
ceiver, assignee,  guardian,  conservator,  trustee,  executor,  admin- 
istrator or  other  fiduciary  or  party  from  whom  a  suretyship  obligation 
is  required  or  permitted  or  by  law  allowed  may  deposit  for  safekeeping 
any  or  all  moneys,  assets  and  other  property  for  which  he  or  it  is  or 
may  be  responsible  with  a  bank,  savings  bank,  safe  deposit  or  trust 
company  authorized  by  law  to  do  business  as  such,  and  in  such  man- 
ner as   to   prevent  the   withdrawal   or   alienation  thereof  without  the 


1966— 33i  182  Ch.  89 

written  consent  of  such  corporation  or  an  order  of  a  court  or  judge 
thereof  having  jurisdiction  of  such  fiduciary,  made  on  such  notice 
to  such  corporation  as  such  court  or  judge  may  direct;  and,  generally, 
it  shall  be  lawful  for  such  a  corporation  to  enter  into  any  contract 
for  its  indemnity  or  security  with  any  person,  partnership,  association 
or  corporation,  provided  that  such  contract  is  not  prohibited  by  law 
or  against  public  policy. 

Limitation  of  risk;  reinsurance. 
Section  1966 — 33i.  1.  No  corporation  transacting  the  surety  business 
shall  execute  any  suretyship  obligation  or  expose  itself  to  any  loss 
ou  any  one  risk  or  hazard  in  an  amount  in  excess  of  one-tenth  of  its 
capital  and  surplus,  unless  it  shall  be  protected  in  excess  of  that 
amount  by: 

(a)  Reinsurance  in  a  corporation  authorized  to  transact  the  surety 
business  in  the  state  where  the  risk  is  located,  provided  that  such 
reinsurance  is  in  such  form  as  to  enable  the  obligee  in  or  beneficiary 
of  such  suretyship  obligation  to  maintain  an  action  thereon  against 
the  company  reinsured  jointly  with  such  reinsurer  and,  upon  recov- 
ering judgment  against  such  reinsured,  to  have  recovery  against  such 
reinsurer  for  payment  to  the  extent  in  which  it  may  be  liable  under 
such  reinsurance  and  in  discharge  thereof;  or 

(b)  The  co-suretyship  of  such  a  corporation  similarly  authorized;  or 

(c)  By  deposit  with  it  in  pledge  or  conveyance  to  it  in  trust  for 
its  protection  of  property;  or 

(d)  By  conveyance  or  mortgage  for  its  protection;  or 

(e)  In  case  such  suretyship  obligation  was  made  on  behalf  or  on 
account  of  a  fiduciary  holding  property  in  a  trust  capacity,  by  deposit 
or  other  disposition  of  a  portion  of  the  property  so  held  in  trust  that 
no  future  sale,  mortgage,  pledge  or  other  disposition  can  be  made 
thereof  without  the  consent  of  such  corporation,  except  by  decree 
or  order  of  a  court  of  competent  jurisdiction; 

Provided:  (1)  That  such  a  corporation  may  execute  what  are  known 
as  transportation  or  warehousing  bonds  for  United  States  internal 
revenue  taxes  to  an  amount  equal  to  fifty  per  cent  of  its  capital  and 
surplus;  (2)  that,  when  the  penalty  of  the  suretyship  obligation 
exceeds  the  amount  of  a  judgment  described  therein  as  appealed  from 
and  thereby  secured,  or  exceeds  the  amount  of  the  subject  matter  in 
controversy  or  of  the  estate  in  the  hands  of  the  fiduciary  for  the  per- 
formance of  whose  duties  it  is  conditioned,  the  bond  may  be  executed 
if  the  actual  amount  of  the  judgment  or  the  subject  matter  in  con- 
troversy or  estate  not  subject  to  supervision  or  control  of  the  surety 
is  not  in  excess  of  such  limitation;  and  (3)  that,  when  the  penalty 
of  the  suretyship  obligation  executed  for  the  performance  of  a  contract 
exceeds  the  contract  price,  the  latter  shall  be  taken  as  the  basis  for 
estimating  the  limit  of  risk  within  the  meaning  of  this  section. 

2.  No  such  corporation  shall,  anything  to  the  contrary  in  this  section 
notwithstanding,  execute  suretyship  obligations  guaranteeing  the  de- 
posits of  any   single   financial   institution  in   an   aggregate   amount  In 


Ch.  89  183  1966— 33k 

excess  of  one-tenth  of  the  capital  and  surplus  of  such  corporate 
surety,  unless  it  shall  be  protected  in  excess  of  that  amount  by  credits 
in  accordance  with  subdivisions  (a),  (b),  (c)  and  (d)  of  this  section. 

Cost  of  surety  bond  lawful  item  of  expense. 

Section  1966 — 33j.  It  shall  be  lawful  for  any  receiver,  assignee, 
guardian,  conservator,  trustee,  executor,  administrator  or  other  fiduciary 
required  to  give  a  contract  of  suretyship  obligation,  to  include  as  a 
part  of  the  lawful  expense  of  executing  his  or  its  trust  the  lawful 
premium  paid  a  corporation  transacting  the  surety  business  for  exe- 
cuting such  obligation;  for  any  party  entitled  to  recover  costs  or 
disbursements  in  an  action  or  proceeding  at  law  or  in  equity  to  in- 
clude in  such  costs  or  disbursements  such  lawful  premium  as  may 
have  been  paid  to  such  corporation  for  executing  any  contract  of 
suretyship  obligation  therein;  and  for  any  public  officer,  board  or 
commission,  as  such,  required  by  law  to  give  a  suretyship  obligation, 
to  pay  to  such  a  corporation  the  lawful  premium  for  the  execution  of 
such  obligation  out  of  any  moneys  available  for  the  payment  of  ex- 
penses of  his  office  or  department,  unless  such  payment  is  otherwise 
provided  for  or  is  prohibited  by  law. 

Surety  corporation  to  maintain  adequate  reserves. 
Section  1966 — 331t.  1.  A  corporation  transacting  the  surety  business 
shall  at  all  times  keep  and  maintain  adequate  reserves  on  its  surety- 
ship obligations  as  follows:  (a)  an  unearned  premium  reserve  of  fifty 
per  cent  of  the  current  annual  premiums  upon  all  outstanding  surety- 
ship obligation,  provided  that  the  commissioner  of  insurance,  in  esti- 
mating the  condition  of  such  a  corporation,  mayy  charge  it  with  a 
premium  reserve  equal  to  the  unearned  portions  of  the  gross  pre- 
miums charged,  computed  on  each  risk,  from  the  date  of  the  issuance 
of  such  suretyship  obligation;  and  (b)  a  loss  reserve  at  least  equal  to 
the  aggregate  estimated  amounts  due  or  to  become  due  on  account  of 
all  losses  and  claims  of  which  the  corporation  has  received  notice, 
provided  that  such  loss  reserve  shall  also  include  the  estimated 
liability  on  any  notices  received  by  the  corporation  of  the  occurrence 
of  any  event  which  may  result  in  a  loss,  and  the  estimated  liability 
for  all  losses  which  have  occurred  but  on  which  no  notice  has  been 
received. 

2.  For  the  purpose  of  such  reserve,  the  corporation  shall  keep  a 
complete  and  itemized  record  showing  all  losses  and  claims  on  which 
it  has  received  notice,  including  all  notices  received  by  it  of  the  oc- 
currence of  any  event  which  may  result  in  a  loss;  and,  in  its  .annual 
statement  to  the  commissioner  of  insurance,  shall  include  a  schedule 
nhowing  all  losses  and  claims  of  which  the  corporation  has  received 
notice  during  the  year  for  which  the  statement  is  made  and  which 
remain  unpaid  and  undisposed  of  on  December  thirty-first  of  such 
year,   and   shall   also   include   a   schedule   showing  all   the  losses   and 


1966— 3Sn  184  Ch.  89 

claims  of  the  corporation  unpaid  on  December  thirty-first  of  the  year 
next  preceding,  specifying  whether  the  claims  have  been  settled  or 
remain  unadjusted,  and  setting  opposite  each  claim  the  amount  of 
the  reserve  carried  or  maintained  against  it. 

3.  Whenever,  in  the  judgment  of  the  commissioner  of  insurance, 
the  loss  reserves  on  the  suretyship  obligations  of  any  corporation, 
calcu.ated  in  accordance  with  the  provisions  of  this  section,  are 
inadequate,  he  may,  In  his  discretion,  require  such  corporation  to 
maintain  additional  reserves. 

When  corporation  exempt  from  municipal  taxes  and  licenses. 
Section  1966 — 331.  A  corporation  transacting  a  surety  business  in 
this  state  which  has  paid  the  fees  and  taxes  chargeable  to  it  by  gen- 
eral law,  as  well  as  the  agents  of  such  a  corporation,  shall  be  exempt 
from  any  license,  premium,  privilege  or  occupation  taxes  levied  or 
imposed  by  any  political  or  municipal  division  of  this  state. 

Domestic  corporation  already  operating,  subject  to  this  act,  except, 
etc. 

Section  1966 — 33m.  Any  domestic  corporation  heretofore  incor- 
porated  or  extended  under  the  provisions  of  any  general  or  special 
law  of  this  state  and  having  at  the  time  of  the  passage  of  this  act 
power  to  transact  a  surety  business  is  hereby  brought  under  all  of 
the  provisions  of  this  act,  except  that  such  a  corporation  shall  be 
entitled  to  the  certificate  of  authority  specified  in  section  1966 — 33f  of 
this  act  if  its  capital,  surplus  and  deposit  at  the  time  of  the  applica- 
tion for  such  certificate  are  not  less  than  the  amount  of  the  capital, 
surplus,  and  deposit  respectively  required  of  such  a  corporation  prior 
to  the  passage  of  this  act. 

Surety  may  be  discharged,  how. 
Section  1966 — 33n.  Any  surety  corporation  which,  or  any  indivi- 
dual who,  has  executed  or  may  hereafter  execute,  as  surety,  the  bond 
of  any  trustee,  committee,  guardian,  assignee,  receiver,  executor,  ad- 
ministrator, or  other  fiduciary,  shall  be  discharged  from  liability  there- 
on as  hereinafter  provided.  Such  surety  may,  on  notice  to  the  principal 
named  in  such  bond,  apply  to  the  court  that  accepted  such  bond,  or  to 
any  judge  thereof,  praying  to  be  discharged  from  liability  as  such 
surety  for  any  act  or  omission  of  such  principal  occurring  after  the 
date  of  an  order  discharging  such  surety  as  hereinafter  provided,  and 
that  such  principal  be  required  to  give  new  suretyship  and  to  account. 
Notice  of  application  for  such  discharge  may  be  served  on  such  princi- 
pal within  or  without  the  state  not  less  than  five  days  prior  to  the  date 
on  which  such  application  is  to  be  made,  unless  it  satisfactorily  ap- 
pears to  the  court,  or  a  judge  thereof,  that  personal  notice  cannot  be 
given  with  due  diligence  within  the  state,  in  which  case  the  notice 
may  be  given  in  such  manner  as  the  court  or  a  judge  thereof  shall 
direct.    Pending  such  application,  the  court  or  judge  may  restrain  such 


Ch.  89  185  1966— 33n 

principal  from  acting,  except  to  preserve  the  trust  estate,  until  further 
order.  If  upon  the  return  of  such  application  such  principal  shall  fail 
to  file  new  suretyship  to  the  satisfaction  of  the  court  or  judge,  the  court 
or  judge  must  thereupon  make  an  order  requiring  the  principal  to  file 
new  suretyship  within  a  period  not  exceeding  five  days.  If  such  new 
suretyship  shall  be  filed  upon  the  return  of  such  application,  or  within 
the  time  fixed  by  such  order,  the  court  or  judge  must  thereupon  make 
a  decree  or  order  requiring  the  principal  to  account  for  all  his  acts  and 
proceedings  to  and  including  the  date  of  such  decree  or  order,  and  to 
file  such  account  within  a  time  fixed,  not  exceeding  twenty  days,  and 
discharge  the  surety  making  such  application  from  liability  for  any  act 
or  default  of  the  principal  subsequent  to  the  date  of  such  decree  or 
order.  If  the  principal  shall  fail  to  so  file  such  new  suretyship  within 
the  time  specified,  a  decree  or  order  must  be  made  revoking  the  ap- 
pointment of  such  principal  or  removing  him  and  requiring  him  to  so 
account  and  file  such  account  within  not  more  than  twenty  days.  If  the 
principal  shall  fail  to  file  his  account  as  herein  provided,  such  surety 
may  make  and  file  such  account  with  like  force  and  effect  as  though 
filed  by  such  principal,  and  upon  settlement  thereof  and  upon  the  trust 
fund  or  estate  being  found  or  made  good  and  paid  over  or  properly  se- 
cured, credit  shall  be  given  for  all  commissions,  costs,  disbursements, 
and  allowances  to  which  the  principal  would  be  entitled  were  he  ac- 
counting, and  allowance  shall  be  made  to  such  surety  for  the  expense 
incurred  in  so  filing  such  account  and  procuring  the  settlement  thereof. 
After  the  filing  of  an  account  as  herein  i-equired  or  permitted,  the  court 
or  judge  must  upon  the  petition  of  the  principal  or  surety  issue  an  order 
requiring  all  persons  interested  in  the  estate  or  trust  to  attend  a  set- 
tlement of  such  account  at  a  time  and  place  therein  specified,  and  upon 
the  trust  fund  or  estate  being  found  or  made  good  and  paid  over  or 
properly  secured,  such  surety  shall  be  discharged  from  any  and  all  lia- 
bility; upon  demand  made  in  writing  by  the  principal,  such  surety 
shall  return  any  compensation  that  has  been  paid,  for  the  unexpired 
period  of  such  suretyship.  Any  such  trustee,  committee,  guardian,  as- 
signee, receiver,  executor,  administrator,  or  other  fiduciary,  shall  be 
entitled  to  have  any  such  surety  corporation  that  is  surety  on  his  bond 
discharged  from  liability  thereon,  and  such  fiduciary  may  file  new 
suretyship  as  hereinafter  provided.  Such  fiduciary  may,  on  written 
notice  to  the  surety  on  such  bonds,  and  to  all  persons  that  are  or  may 
be  interested  therein,  apply  to  the  court  that  accepted  such  bond,  or  to 
a  judge  thereof,  praying  that  such  surety  be  discharged  from  liability 
thereon,  and  that  such  principal  be  allowed  to  file  new  suretyship  and 
to  account.  Notice  of  such  application  shall  be  served  on  such  surety 
and  on  each  of  the  persons  interested,  within  the  state,  not  less  than 
ten  days  prior  to  the  date  on  which  such  application  is  to  be  made, 
unless  it  satisfactorily  appears  to  such  court  or  judge  that  such  notice 
cannot  with  due  diligence  be  served  within  the  state,  in  which  case 
notice  may  be  given  in  such  manner  as  such  court  or  judge  shall  direct. 
Upon  the  return  of  such  application,  such  principal  may  file  new  surety- 
ship satisfactory  to  such  court  or  judge,  and  therewith  file  an  account 


1966—34  186  Ch.  89 

of  all  his  proceedings,  whereupon  the  court  or  judge  shall  proceed, 
upon  due  notice  to  all  persons  interested,  to  judicially  settle  such  ac- 
count and  duly  credit  and  charge  such  principal;  and  upon  the  trust 
fund  or  estate  being  found  or  made  good  and  paid  over  or  properly 
secured,  such  surety  shall  be  discharged  from  any  and  all  liability. 

Fidelity  bond,  certificate  of  authority,  omission. 
Section  1966 — 34.  1.  The  commissioner  of  insurance,  upon  due 
proof  by  a  suretyship  company  of  its  possessing  the  qualifications  re- 
quired, shall  issue  a  certificate  setting  forth  that  it  has  qualified  and 
is  authorized  for  the  ensuing  year  to  do  business  under  these  statutes, 
which  certificate  or  a  copy  thereof  certified  by  the  commissioner  of 
insurance  shall  be  evidence  of  such  qualification  and  of  the  company's 
authority  to  become  and  to  be  accepted  as  sole  surety  on  all  instru- 
ments mentioned  in  sections  1966 — 33  and  1966 — 33a,  of  its  solvency 
and  credit  for  all  purposes  and  its  sufficiency  as  such  surety;  and  said 
certificate  or  a  copy  thereof  certified  as  aforesaid  shall  be  equivalent 
to  the  justification  required  of  sureties  by  law. 

2.  No  bond,  undertaking,  or  instrument  executed  by  any  surety  com- 
pany authorized  to  do  business  in  this  state  at  such  time,  shall  be  held 
invalid  or  ineffective  because  of  the  omission  of  such  certificate  or  a 
certified  copy  thereof;  provided,  however,  that  the  court  in  which,  or 
the  officer  with  whom,  any  such  bond,  undertaking,  or  instrument  shall 
be  filed,  or  any  person  who  might  claim  the  benefit  thereof,  may  re- 
quire the  person  filing  such  bond,  undertaking,  or  instrument  to  file 
such  certificate,  or  a  certified  copy  thereof,  in  such  court,  or  with 
such  officer,  upon  giving  eight  days'  notice  in  writing  to  the  person 
filing  such  bond,  instrument,  or  undertaking,  and  if  such  person  shall 
fail  to  file  such  certificate  or  a  certified  copy  thereof  within  such  period, 
such  bond,  instrument,  or  undertaking  shall  be  valid,  but  shall  be  of 
no  effect  for  the  purposes  of  the  person  so  filing  the  same,  unless  such 
person  shall  before  the  expiration  of  such  time  file  such  other  and 
further  bond,  undertaking,  or  instrument  as  originally  required. 

3.  Upon  application  of  any  insurance  company  authorized  to  transact 
the  business  of  fidelity  insurance,  requesting  that  a  certified  copy  of 
its  certificate  of  authority  be  furnished  to  any  designated  public  officer 
in  this  state,  with  whom  any  bond,  undertaking,  or  instrument  executed 
by  such  company  shall  be  filed,  and  the  payment  by  such  company  of 
the  fee  required  by  law,  the  commissioner  of  insurance  shall  issue  and 
forward  such  certified  copy  by  mail  direct  to  such  officer,  who  shall 
file  the  same  in  his  office.  Such  certified  copy  shall  be  authority  for 
the  approval  of  any  such  bond,  undertaking  or  instrument,  and  be  evi- 
dence of  the  authority  of  the  company  to  transact  the  kinds  of  business 
for  the  time  specified  therein,  or  until  prior  revocations  of  certificate 
of  authority  as  provided  by  law,  in  which  case  the  commissioner  of 
insurance  shall  immediately  give  notice  thereof  to  each  officer  to  whom 
such  certified  copy  shall  have  been  forwarded. 


Ch.  89  187  1966—37 

4.  Whenever  such  certificate  shall  be  furnished  to  any  public  officer 
with  whom  bonds,  undertakings  or  other  instruments  of  suretyship 
shall  be  filed,  it  shall  be  unnecessary  to  attach  to  any  bond,  undertaking 
or  other  instrument  of  suretyship  filed  with  such  public  officer,  for  the 
time  specified  therein,  the  certificate  provided  by  subsection  1  of  sec- 
tion 1966—34  of  the  statutes. 

RefeiTed  to  in  378Sa. 

5.  Whenever  it  shall  come  to  the  knowledge  of  the  commissioner  of 
insurance  that  any  surety  company  licensed  to  do  business  in  this  state, 
has  become  financially  embarrassed,  fails  to  carry  out  its  contracts, 
without  reasonable  excuse,  files  a  petition  in  bankruptcy,  is  placed  in 
the  hands  of  a  receiver  or  becomes  insolvent,  it  shall  immediately  be- 
come the  duty  of  the  commissioner  of  insurance  to  notify  every  county 
judge  and  clerk  of  all  courts  of  record  in  this  state  of  the  fact  of  such 
surety  company  becoming  financially  embarrassed,  failure  to  carry  out 
its  contracts)  the  filing  of  a  petition  in  bankruptcy,  being  placed  in  the 
hands  of  a  receiver  or  trustee  or  becoming  insolvent,  and  upon  the  re- 
ceipt of  such  notice  it  shall  be  the  duty  of  the  county  judge  and  clerks 
of  courts  of  record  to  notify  and  require  every  executor,  administrator, 
guardian,  trustee  or  other  person  or  corporation  who  have  filed  bonds 
by  such  above  mentioned  surety  company,  to  forthwith  file  new  bonds 
with  new  sureties  to  be  approved  by  said  courts. 

Release  from  liability. 

Section  1966 — 35.  Any  corporation  executing  any  instrument  within 
section  1966 — 33  may  be  released  from  its  liability  thereon  on  the 
same  terms  and  conditions  as  are  or  may  be  by  law  prescribed  for  the 
release  of  individuals  upon  the  same. 

Premium,  recoverable  as  costs. 

Section  1966 — 36.  Any  receiver,  assignee,  guardian,  committee, 
trustee,  executor,  administi*ator  or  other  fiduciary,  required  by  law  or 
the  order  of  any  court  or  judge  to  give  a  bond  or  other  obligation  as 
such,  may  include  as  a  part  of  the  lawful  expense  of  executing  his  trust 
such  reasonable  sum  paid  a  corporation  authorized  by  law  so  to  do  for 
becoming  his  surety  on  such  bond  or  obligation  as  may  be  allowed  by 
the  court  in  which  or  the  judge  before  whom  he  is  allowed  or  required 
to  account,  not  exceeding  one  per  cent  per  annum  on  the  amount  of 
such  bond  or  obligation  by  such  surety  executed;  and  in  all  actions  or 
proceedings  the  party  entitled  to  recover  costs  may  include  therein 
such  reasonable  sum  as  may  have  been  paid  by  him  to  such  corpora- 
tion for  excuting  or  guaranteeing  any  bond  or  obligation  therein,  not 
exceeding  two  per  centum  of  the  amount  of  such  obligation. 

Deposit  of  money. 

Section  1966 — 37.  Any  receiver,  assignee,  guardian,  trustee,  com- 
mittee, executor,  administrator,  or  other  fiduciary  or  party  of  whom 


1966—40  188  Ch.  89 

a  bond,  undertaking  or  other  obligation  is  required  may  agree  and 
arrange  with  his  surety  or  sureties  for  the  deposit  for  safe-keeping 
of  any  or  all  money,  assets  and  other  property  for  which  he  is  or 
may  be  responsible,  with  a  bank,  savings  bank,  safe  deposit  or  trust 
company  authorized  by  law  to  do  business  as  such,  and  in  such  man- 
ner as  to  prevent  the  withdrawal  or  alienation  of  such  money,  assets 
or  other  property  or  any  part  thereof,  without  the  written  consent 
of  such  surety  or  sureties  or  an  order  of  the  court  or  a  judge  thereof, 
made  on  such  notice  to  such  surety  or  sureties  as  the  court  or  judge 
may  direct. 

Fidelity  bond,  expense,  limitation. 
Section  1966 — 38.  The  state,  any  county,  town,  village,  city  or 
school  district  may  pay  the  cost  of  any  official  bond  furnished  by  an 
officer  thereof,  pursuant  to  law  or  any  rules  or  regulations  requiring 
the  same,  if  said  officer  shall  furnish  a  bond  with  a  surety  company 
or  companies  authorized  to  do  business  in  this  state,  said  cost  not 
to  exceed  one-fourth  of  one  per  cent  per  annum  on  the  amount  of  said 
bond  or  obligation  by  said  surety  executed.  The  cost  of  any  such 
bond  to  the  state  shall  be  charged  to  the  appropriation  for  the  state 
officer,  department,  board,  commission  or  other  body,  the  officer  of 
which  is  required  to  furnish  the  bond. 

Estoppel. 

Section  1966 — 39.  Any  corporation  which  shall  execute  any  bond, 
recognizance,  obligation,  stipulation  or  undertaking  as  surety  shall 
be  estopped,  in  any  proceeding  to  enforce  the  liability  which  it  shall 
have  assumed  to  incur,  to  deny  its  power  to  execute  the  same  or  as- 
sume such  liability. 

Credit  guarantee  business;  powers. 
Section  1966 — 40.  Any  corporation  organized  under  the  laws  of 
this  state  or  licensed  to  do  a  credit  guarantee  business  therein  may 
guarantee  from  loss  and  agree  to  pay  to  merchants,  manufacturers, 
dealers  and  other  persons  engaged  in  business  and  giving  credit  in 
the  same  the  debt  or  debts  owing  to  them,  indemnify  them  from  loss, 
charge  and  receive  therefor  such  a  sum  as  consideration  for  such 
agreement  of  indemnity  as  shall  be  agreed  upon,  buy,  hold,  own  and 
take  an  assignment  of  any  and  all  claims,  accounts  and  demands  so 
guaranteed  and  hold,  own  and  collect  the  same  and  enforce  the  collec- 
tion thereof  by  action  the  same  as  the  original  holder  and  owner  there- 
of might  or  could  do;  and  may  also  insure  the  payment  of  money  for 
personal  services  under  contracts  of  hiring.  Any  such  corporation  may 
use  its  capital  stock  or  other  funds  to  purchase  or  pay  for  any  claim 
or  demand  the  payment  of  which  it  has  guaranteed. 


Ch.  89  189  1966—44 

Employer's  liability  policy. 

Section  1966 — 42.  No  casualty  corporation  issuing  employer's  lia- 
bility policies  shall  condition  the  same  upon  compliance  by  the  assured 
with  "any  law  or  ordinance  respecting  the  safety  of  persons,"  but  shall 
clearly  and  distinctly  state  what  conditions  and  requirements  are  to 
be  complied  with  by  him. 

Dividends;  reduction  of  capital  and  surplus. 
Section  1966 — 44.  The  directors  of  any  such  corporation  shall  not 
make  any  dividend,  except  from  the  surplus  profits  arising  from  their 
business,  nor  divide,  withdraw  or  in  any  way  pay  to  the  stockholders 
or  any  of  them  any  part  of  its  capital  or  reduce  the  net  surplus  of  the 
corporation  to  an  amount  less  than  ten  per  cent  of  its  capital  stock, 
except  as  authorized  by  law.  For  a  violation  of  any  of  the  provisions 
of  this  section  the  directors  under  whose  administration  the  same 
happened  (except  those  who  have  caused  dissent  therefrom  to  be  en- 
tered at  large  upon  the  minutes  of  such  directors'  meeting  at  the  time 
or  were  not  present  when  the  action  was  taken)  shall  jointly  and 
severally  be  liable  to  the  corporation  and  its  creditors  to  the  full 
amount  of  the  capital  of  the  corporation  so  divided,  withdrawn,  paid 
out  or  reduced.  In  estimating  such  profits  there  shall  be  reserved 
therefrom  a  sum  equal  to  the  whole  amount  of  unearned  premiums  on 
unexpired  risks  and  policies,  all  sums  due  the  corporation  on  bonds, 
mortgages,  stocks  and  book  accounts  of  which  no  part  of  the  principal 
or  the  interest  thereon  has  been  paid  during  the  last  year  and  for  the 
collection  of  which  no  action  or  proceeding  has  been  commenced,  or 
which,  after  judgment  obtained  thereon,  shall  remain  more  than  two 
years  unsatisfied  and  on  which  interest  shall  not  have  been  paid;  all 
interest  due  and  remaining  unpaid  and  all  deposits  for  the  special  pro- 
tection of  policyholders  of  other  states  or  of  foreign  countries.  Any 
such  corporation  may  declare  dividends  in  any  year  not  exceeding  ten 
per  cent  of  its  capital  stock,  if,  in  addition  to  the  amount  of  such  stock, 
plus  ten  per  cent  thereof  and  of  such  dividends  and  all  its  outstanding 
liabilities,  it  shall  have  accumulated  and  be  in  possession  of  a  lawful 
fund  equal  to  the  amount  of  all  unearned  premiums  on  risks  not  termi- 
nated at  the  time  of  making  such  dividend.  No  dividend  in  excess  of 
said  ten  per  cent  of  its  capital  stock  shall  be  declared  as  hereinbefore 
provided  until  such  corporation  shall  be  in  possession  of  a  net  surplus 
equal  to  one-half  of  its  capital  stock.  Any  dividend  made  contrary  to 
these  provisions  shall  be  cause  for  the  forfeiture  of  the  charter  of  the 
corporation  making  it,  and  each  stockholder  receiving  such  dividend 
shall  be  liable  to  its  creditors  to  the  extent  of  the  dividend  received, 
in  addition  to  the  other  penalties  and  punishments  prescribed  by  law. 
The  word  "year,''  whenever  used  in  this  section,  shall  not  be  construed 
to  mean  the  calendar  year. 

See  sections  1906  to  1908a,  1966 — S^  (i). 


1966—46  190  Ch.  89 

Increase  of  capital. 

Section  1966 — 45.  Any  domestic  casualty  insurance  or  suretyship 
corporation,  whenever  it  shall  have  accumulated  and  be  in  possession 
of  a  fund,  in  addition  to  the  amount  of  its  capital  stock  and  all  actual 
outstanding  liabilities,  including  reinsurance  reserve  in  excess  of  one- 
half  of  the  amount  of  all  premiums  on  risks  not  terminated  may  in- 
crease its  capital  stock  from  such  fund  and  distribute  the  increase  pro 
rata  to  its  stockholders;  provided,  that  such  increase  shall  be  equal 
to  at  least  twenty-five  percent  of  the  original  capital  stock  and  shall 
have  been  authorized  by  at  least  three-fourths  of  the  directors  and  ap- 
proved by  the  commissioner  of  insurance,  and  that  any  such  corpora- 
tion may  declare  a  dividend  as  provided  in  the  preceding  section.  It 
may  at  any  time  increase  its  capital  stock  (after  notice  of  such  inten- 
tion given  once  a  week  for  four  weeks  in  any  newspaper  published  in 
the  county  where  such  corporation  is  located),  with  the  written  consent 
of  three-fourths  in  amount  of  its  stockholders,  unless  otherwise  pro- 
vided in  its  articles  of  organization,  by  altering  or  amending  the  same 
in  this  respect  and  filing  a  copy  thereof,  so  amended,  together  with  a 
declaration  under  its  corporate  seal,  signed  by  its  president  and  direc- 
tors, of  its  desire  so  to  do,  with  such  written  consent  of  its  stockholders 
to  such  increase,  in  the  office  of  the  commissioner  of  insurance,  where- 
upon the  same  proceedings  shall  be  had  as  are  required  upon  the  or- 
ganization of  such  a  corporation. 


Impairment  of  capital,  how  made  good. 
Section  1966 — 46.  Whenever  it  shall  appear  to  the  commissioner  of 
insurance,  from  any  statement  made  to  him,  from  an  examination  made 
by  him  or  by  any  examiner  appointed  by  him,  that  the  capital  stock  of 
any  such  corporation  is  impaired  to  an  amount  exceeding  twenty  per 
cent  thereof,  and  he  shall  be  of  the  opinion  that  the  interest  of  the  pub- 
lic will  not  be  prejudiced  by  permitting  such  corporation  to  continue 
business  with  a  reduced  capital,  such  corporation  may,  with  his  per- 
mission, reduce  its  capital  stock  and  the  par  value  of  the  shares  there- 
of to  such  an  amount  as  he  shall  certify  to  be  in  his  opinion  justified 
by  the  assets  of  such  corporation;  but  no  part  of  such  assets  shall  be 
distributed  to  the  stockholders,  nor  shall  such  capital  stock  be  reduced 
to  an  amount  less  than  the  sum  required  by  law  for  the  organization  of 
a  new  corporation  for  the  transaction  of  the  same  kind  of  business  as 
the  corporation  is  engaged  in.  Such  a  reduction  of  the  capital  shall 
only  be  made  upon  a  vote  of  the  majority  of  the  stock  represented  at  a 
meeting  legally  called  for  that  purpose.  If  in  the  opinion  of  the  com- 
missioner of  insurance,  such  reduction  will  not  be  to  the  interest  of 
the  policyholders,  or  in  the  event  of  the  refusal  of  the  stockholders  to 
consent  thereto,  he  shall  determine  the  amount  of  the  impairment  or 
deficiency  and  issue  a  written  requisition  to  the  corporation  requiring 
its  stockholders  to  make  good  the  amount  of  impairment  or  deficiency 
within  such  period  as  he  may  designate,  not  less  than  thirty  nor  more 
than  ninety  days  from  the  service  of  the  requisition.     Upon  receipt  of 


Ch.  89  191  ■  1966--47a 

such  requisition  the  directors  shall  forthwith  call  upon  the  stock- 
holders ratably  for  such  amounts  as  will  make  up  such  impairment  or 
deficiency.  If  any  stockholder  refuse  or  neglect  to  pay  the  amount 
called  for  after  notice,  given  personally  or  by  advertisement,  in  such 
time  as  will  comply  with  the  order  of  said  commissioner  the  directors 
may,  by  resolution,  declare  the  stock  of  such  person  cancelled;  but 
such  failure  to  pay  shall  not  release  the  stockholder  from  any  liability 
to  the  corporation.  The  directors  may  issue  new  certificates  of  stock 
in  lieu  of  the  stock  so  forfeited  and  dispose  of  the  same  at  not  less 
than  par.  For  any  losses  accruing  upon  new  risks  taken  after  the  ex- 
piration of  the  period  limited  by  the  commissioner  of  insurance  in  any 
such  order  and  before  such  impairment  shall  be  made  up,  the  directors 
shall  be  jointly  and  severally  liable  to  the  extent  thereof;  and  any 
transfer  of  stock  made  during  the  pendency  of  any  such  examination 
or  after  any  such  order  shall  have  been  made  and  before  any  impair- 
ment  of  deficiency  specified  therein  shall  be  made  good,  shall  not  re- 
lease the  person  making  the  transfer  from  his  liability  for  loss  accru- 
ing previous  thereto.  If  the  amount  of  such  impairment  or  deficiency 
sliall  not  be  made  good  within  the  time  specified  in  such  order  the 
corporation  shall  be  deemed  insolvent,  and  it  shall  be  the  duty  of  the 
commissioner  of  insurance  and  the  attorney-general  to  apply  forthwith 
for  the  appointment  of  a  receiver  and  the  forfeiture  of  its  franchises. 
See  section  1!)G9. 

Reserve  liability. 

Section  1966 — 47.  In  computing  the  reserve  liability  of  casualty 
insurance  and  suretyship  corporations  the  commissioner  of  insurance 
shall  make  such  calculations  as  in  his  judgment  are  equitable  and  just 
to  both  policyholders  and  the  company;  provided,  that  such  liability  so 
determined  shall  not  be  less  than  fifty  per  cent  of  the  premiums  writ- 
ten in  the  company's  policies. 

Method  for  computing  reserves  for  liability  and  workmen's  com- 
pensation insurance  companies. 

Section  1966— 47a.  1.  The  reserve  for  outstanding  losses  under  in- 
surance against  loss  or  damage  from  accident  to  or  injuries  suffered 
by  an  employe  or  other  person  and  for  which  the  insured  is  liable  shall 
be  computed  as  follows: 

(1)  For  all  liability  suits  being  defended  under  policies  written 
more  than 

(a)  Ten  years  prior  to  the  date  as  of  which  the  statement  is  made, 
one  thousand  five  hundred  dollars  for  each  suit. 

(b)  Five  and  less  than  ten  years  prior  to  the  date  as  of  which  the 
statement  is  made,  one  thousand  dollars  for  each  suit. 

(c)  Three  and  less  than  five  years  prior  to  the  date  as  of  which  the 
statement  is  made,  eight  hundred  and  fifty  dollars  for  each  suit. 

(2)  For  all  liability  policies  written  during  the  three  years  imme- 
diately preceding  the  date  as  of  which  the  statement  is  made,   such 


1966— 47a  192  Ch.  89 

reserve  shall  be  sixty  per  centum  of  the  earned  liability  premiums  of 
each  of  such  three  years  less  all  loss  and  loss  expense  payments  made 
under  liability  policies  written  in  the  corresponding  years;  but  in  any 
event,  such  reserve  shall,  for  the  first  of  such  three  years,  be  not  less 
than  seven  hundred  and  fifty  dollars  for  each  outstanding  liability  suit 
on  said  year's  policies. 

(3)  For  all  compensation  claims  under  policies  written  more  than 
three  years  prior  to  the  date  as  of  which  the  statement  is  made,  the 
present  values  at  four  per  centum  interest  of  the  determined  and  the 
estimated  future  payments. 

(4)  For  all  compensation  claims  under  policies  written  in  the  three 
years  immediately  preceding  the  date  as  of  which  the  statement  is 
made,  such  reserve  shall  be  sixty-five  per  centum  of  the  earned  com- 
pensation premiums  of  each  of  such  three  years,  less  all  loss  and  loss 
expense  payments  made  in  connection  with  such  claims  under  policies 
written  in  the  corresponding  years;  but  in  any  event,  in  the  case  of 
the  first  year  of  any  such  three-year  period  such  reserve  shall  be  not 
less  than  the  present  value  at  four  per  centum  Interest  of  the  deter- 
mined and  the  estimated  unpaid  compensation  claims  under  policies 
written  during  such  year;  provided,  however,  that  in  computing  the 
reserve  for  the  statement  for  December  31,  1917,  and  December  31, 
1918,  the  ratios  sixty  per  centum  and  sixty-two  and  one-half  per  centum 
respectively  shall  be  used  instead  of  sixty-five  per  centum  as  herein- 
before provided. 

Definition  of  terms. 

2.  The  term  "earned  premium''  as  used  herein,  shall  include  gross 
premiums  charged  on  all  policies  written,  including  all  determined 
excess  and  additional  premiums,  less  return  premiums,  other  than 
premiums  returned  to  policyholders  as  dividends,  and  less  reinsurance 
premiums  and  premiums  on  policies  cancelled,  and  less  unearned  prem- 
iums on  policies  in  force.  But  any  participating  company  which  has 
charged  in  its  pi-femiums  a  loading  in  excess  of  its  average  expense 
requirements  shall  not  be  required  to  include  such  loading  in  its 
earned  premiums,  provided  a  statement  of  the  amount  of  such  loading 
is  approved  by  the  commissioner  of  insurance. 

The  term  "compensation,"  as  used  in  this  act,  shall  relate  to  all  in- 
surances effected  by  virtue  of  statutes  providing  compensation  to  em- 
ployes for  personal  injuries  irrespective  of  fault  of  the  employer.  The 
term  "liability,"  shall  relate  to  all  insurance  except  compensation  in- 
surance against  loss  or  damage  from  accident  to  or  injuries  suffered 
by  an  employe  or  other  person  and  for  which  the  insured  is  liable. 

The  terms  "loss  payments"  and  "loss  expense  payments,"  as  used 
herein,  shall  include  all  payments  to  claimants,  including  payments 
for  medical  and  surgical  attendance,  legal  expenses,  salaries  and  ex- 
penses of  investigators,  adjustors  and  field  men,  rents,  stationery,  tele- 
graph and  telephone  charges,  postage,  salaries  and  expenses  of  oflBce 


Ch.  89  193  1966— 47a 

employes,  home  office  expenses,  and  all  other  payments  made  on  ac- 
count of  claims,  whether  such  payments  shall  be  allocated  to  specific 
claims  or  unallocated. 

Distribution  of  unallocated  expense  payments. 

3.  All  unallocated  liability  loss  expense  payments  made  in  a  given 
calendar  year  subsequent  to  the  first  four  years  in  which  an  insurer 
has  been  issuing  liability  policies,  shall  be  distributed  as  follows: 
Thirty-five  per  centum  shall  be  charged  to  the  policies  written  in  that 
year,  forty  per  centum  to  the  polices  written  in  the  preceding  year, 
ten  per  centum  to  the  policies  written  in  the  second  year  preceding, 
ten  per  centum  to  the  policies  written  in  the  third  year  preceding,  and 
five  per  centum  to  the  policies  written  in  the  fourth  year  preceding,  and 
such  payments  made  in  each  of  the  first  four  calendar  years  in  which 
an  insurer  issues  liability  policies  shall  be  distributed  as  follows:  In 
the  first  calendar  year  one  hundred  per  centum  shall  be  charged  to  the 
policies  written  in  that  year,  in  the  second  calendar  year  fifty  per 
centum  shall  be  charged  to  the  policies  written  in  that  year  and  fifty 
per  centum  to  the  policies  written  in  the  preceding  year,  in  the  third 
calendar  year  forty  per  centum  shall  be  charged  to  the  policies  written 
in  that  year,  forty  per  centum  to  the  policies  written  in  the  preceding 
year,  and  twenty  per  centum  to  the  policies  written  in  the  second  year 
preceding,  and  in  the  fourth  calendar  year  thirty-five  per  centum  shall 
be  charged  to  the  policies  written  in  that  year,  forty  per  centum  to  the 
policies  written  in  the  preceding  year,  fifteen  per  centum  to  the  policies 
written  in  the  second  year  preceding,  and  ten  per  centum  to  the  poli- 
cies written  in  the  third  year  preceding,  and  a  schedule  showing  such 
distribution  shall  be  included  in  the  annual  statement. 

All  unallocated  compensation  loss  expense  payments  made  in  a  given 
calendar  year  subsequent  to  the  first  three  years  in  which  an  insurer 
has  been  issuing  compensation  policies  shall  be  distributed  as  follows: 

Forty  per  centum  shall  be  charged  to  the  policies  written  in  that 
year,  forty-five  per  centum  to  the  policies  written  in  the  preceding 
year,  ten  per  centum  to  the  policies  written  in  the  second  year  preced- 
ing and  five  per  centum  to  the  policies  written  in  the  third  year  pre- 
ceding, and  such  payments  made  in  each  of  the  first  three  calendar 
years  in  which  an  insurer  issues  compensation  policies  shall  be  dis- 
tributed as  follows:  In  the  first  calendar  year  one  hundred  per  centum 
shall  be  charged  to  the  policies  written  in  that  year,  in  the  second 
calendar  year  fifty  per  centum  shall  be  charged  to  the  policies  written 
in  that  year  and  fifty  per  centum  to  the  policies  written  in  the  pre- 
ceding year,  in  the  third  calendar  year  forty-five  per  centum  shall  be 
charged  to  the  policies  written  in  that  year,  forty-five  per  centum  to  the 
policies  written  in  the  preceding  year  and  ten  per  centum  to  the  poli- 
cies written  in  the  second  year  preceding,  and  a  schedule  showing 
such  distribution  shall  be  included  in  the  annual  statement. 

13 


1966y  194  Ch.  89 

Whenever  in  the  judgment  of  the  commissioner  of  insurance,  the 
liability  or  compensation  loss  reserves  of  any  insurer  under  his  super- 
vision, calculated  in  accordance  with  the  foregoing  provisions  are 
either  inadequate  or  excessive,  he  may,  in  his  discretions  require  or 
permit  such  insurer  to  set  up  reserves  based  upon  estimated  individual 
claims  or  such  other  basis  as  he  may  approve. 

Schedule  of  experience  to  be  filed. 
4.  Each  insurer  that  writes  liability  or  compensation  policies  shall 
include  in  the  annual  statement  required  by  law  a  schedule  of  its  ex. 
perience  thereunder  in  such  form  as  the  commissioner  of  insurance 
may  prescribe. 

Notice  of  injury,  condition  to  be  printed  on  policy;    service  of. 

Section  1966 — 49a.  It  shall  be  unlawful  for  any  accident  or  casualty 
insurance  company,  corporation  or  association  licensed  to  transact 
business  in  the  state  of  Wisconsin,  its  officers,  employes  or  agents  to 
limit  by  any  means  or  in  any  manner  the  time  for  the  service  of  any 
notice  of  injury  that  may  be  required  of  the  person  insured,  to  a  less 
period  of  time  than  twenty  full,  calendar  days. 

The  time,  not  less  than  twenty  full,  calendar  days,  that  may  be  re- 
quired of  any  insured  person  for  serving  a  notice  of  injury  as  provided 
in  section  1*  of  this  act,  shall  be  clearly  and  conspicuously  written  or 
printed  upon  the  face  of  every  accident  or  casualty  insurance  policy 
or  certificate  issued  to  any  person. 

'Refers  to  the  first  paragraph  of  1966 — J^Oa. 

The  deposit  in  any  post  office  by  any  insured  person,  his  agent  or  at- 
torney, of  a  registered,  postage  prepaid  letter,  containing  the  proper 
notice  of  injury  at  any  time  within  twenty  full,  calendar  days  after 
the  injury  received  by  the  assured,  properly  addressed  to  the  company, 
corporation  or  association  issuing  the  accident  or  casualty  policy  or 
certificate,  shall  he  a  lawful  and  sufficient  service  of  any  notice  of 
injury  that  may  be  required. 

DEPARTMENT  OF   INSURANCE 
Commissioner,  quaiifications.  appointment,  term. 

Section  1966y.  1.  The  governor,  by  and  with  the  advice  and  con- 
sent of  the  senate,  shall  appoint  a  commissioner  of  insurance  forth- 
with upon  the  taking  effect  of  this  act,  and  every  four  years  thereafter. 
Such  commissioner  shall  hold  office  for  four  years  and  until  his  suc- 
cessor is  appointed  and  qualified.  Any  vacancy  shall  be  filled  by  the 
governor  for  the  unexpired  term,  subject  to  confirmation  by  the  senate, 
but  such  appointment  shall  be  in  force  until  acted  upon  by  the  senate. 

2.  The  person  so  appointed  as  such  commissioner  shall  be  known  to 
possess  a  knowledge  of  the  subject  of  insurance,  and  skill  in  matters 
pertaining  thereto.     No  person  appointed  as  such  commissioner  shall 


Ch.  89  195  196S 

hold  any  other  office  under  the  laws  of  this  or  of  any  other  state  or  of 
the  United  States.  Such  commissioner  shall  devote  his  entire  time  to 
the  duties  of  the  office,  and  shall  not  hold  any  position  of  trust  or  profit, 
engage  in  any  occupation  or  business  interfering  with  or  inconsistent 
with  his  duties,  or  serve  on  or  under  any  political  committee  or  as 
manager  of  any  political  campaign  for  any  candidate  or  party. 

3.  All  duties,  rights,  privileges,  powers,  compensation,  and  liabili- 
ties, now  by  law  granted  to  or  imposed  upon  the  commissioner  of  in- 
surance, are  merged  in  and  extended  to  the  office  of  commissioner  of 
insurance,  hereby  created,  so  that  the  office  hereby  created  shall  in  all 
respects  succeed  to  and  stand  in  lieu  of  the  former  office  of  commis- 
sioner of  insurance,  which  is  abolished  from  and  after  the  taking 
effect  of  the  first  appointment  under  this  section. 

Oath,  bond,  etc. 
Section  1967.  The  commissioner  of  insurance  shall  take  and  file  the 
official  oath  and  execute  and  file  an  official  bond  in  the  penal  sum  of 
one  hundred  thousand  dollars,  with  six  or  more  good  and  sufficient 
sureties  or  a  surety  company,  which  bond  shall  be  approved  by  the 
governor,  and  in  event  that  the  commissioner  of  insurance  elects  to 
give  a  surety  bond  as  provided  herein,  the  cost  of  the  same  shall  be 
borne  by  the  state  providing  the  same  does  not  exceed  one-fourth  of 
one  per  cent  per  annum  on  the  amount  of  said  bond.  The  cost  of  said 
bond  shall  be  charged  to  the  proper  appropriation  for  the  commissioner 
of  insurance.  Said  commissioner  shall  have  an  official  seal,  and  shall 
conduct  or  cause  to  be  conducted  all  examinations  of  the  affairs  of  in- 
surance corporations  that  are  or  may  be  required  by  law;  and  gen- 
erally shall  exercise  such  supervision  and  control  over  insurance  com- 
panies doing  business  in  this  state  as  the  law  may  require.  He  shall 
hold  his  office  in  the  capitol  and  be  provided  by  the  superintendent 
of  public  property  with  postage,  stationery,  and  office  supplies,  and  the 
printing  board  shall  furnish  necessary  printing.  All  reports  required 
to  be  made  by  any  insurance  corporation  shall  be  made  to  said  com- 
missioner. 

Deputy;  employes;  appointment;  filing. 
Section  1967a.  The  commissioner  of  insurance  may  appoint  a  dep- 
uty who  shall  be  known  as  deputy  commissioner  of  insurance,  and 
who  shall  take  and  file  the  official  oath  and  give  such  bond  to  the  com- 
missioner as  he  may  prescribe.  The  deputy  shall  have  the  same  power 
over  all  matters  connected  with  the  office  of  the  commissioner  of  insur- 
ance as  the  commissioner  has  whenever  detailed  by  him  to  do  special 
acts,  or  in  case  of  the  sickness  or  absence  of  the  commissioner  from 
the  capitol. 

Examinations;     peyocatlon  of  licenses;     admission;     deposit;     em- 
ployes;   expenses;    collection;    adult;    payment. 

Section  1968.  1.  The  commissioner  of  insurance  may  address  in- 
quiries to  any  insurance  company  doing  business  in  this  state,  or  any 


1966— S  inO  Ch.  89 

officer  thereof  in  relation  to  its  doings  or  condition,  or  any  other 
matter  connected  with  its  transaction;  and  it  shall  be  the  duty  of  every 
company,  or  officer  so  addressed  to  promptly  reply  in  writing  to  such 
inquiries;  and 

2.  Whenever  he  shall  deem  it  expedient  so  to  do,  or  when  any  re- 
sponsible person  shall  file  with  him  written  charges  against  any  such 
company  alleging  that  any  return  or  statement  filed  by  it  with  such 
commissioner  is  false,  or  that  its  affairs  are  in  an  unsound  condition, 
he  shall,  in  person,  or  by  some  one  to  be  appointed  by  him  for  that 
purpose,  not  an  officer  or  agent  of,  or  in  any  manner  interested  in, 
any  insurance  company  doing  business  in  this  state,  except  as  a  policy- 
holder, examine  into  its  affairs  and  condition;  and  it  shall  be  the  duty 
of  the  company,  its  officers  or  agents  to  cause  its  books  to  be  opened 
for  inspection. 

3.  Whenever  it  shall  appear  to  the  commissioner  of  insurance  that 
any  foreign  company  authorized  to  transact  business  in  this  state  is  in 
an  unsound  financial  condition  he  may  revoke  the  certificate  granted 
such  company;  and  he  shall  cause  a  notice  of  such  revocation  to  be 
published  in  the  official  state  paper  and  mail  a  copy  thereof  to  each 
agent  of  the  company.  The  agent  or  agents  of  such  company,  after 
such  notice,  shall  immediately  discontinue  writing  business  for  such 
company. 

4.  The  commissioner  shall  examine  insurance  companies  applying 
for  admission  to  transact  business  in  this  state,  and  If  the  affairs  or 
condition  of  any  such  company  do  not  fully  meet  the  requirements  of 
law  he  shall  withhold  his  certificate. 

5.  The  commissioner  may  require  from  any  insurance  company  and 
any  mutual  benefit  society,  before,  and  from  time  to  time  during  any 
examination,  a  deposit  with  him  of  such  amount  as  he  shall  estimate 
necessary  for  the  expense  of  such  examination.  The  company  or  so- 
ciety, through  the  commissioner,  as  ordered  by  him,  shall  pay  into  the 
state  treasury  the  actual  cost  of  such  examination  in  expenses  paid 
or  to  be  paid  by  the  state,  and  compensation  to  persons  other  than  offi- 
cers and  employes  of  the  state,  and  the  balance  deposited,  if  any,  shall 
be  returned  to  the  company  or  society  making  such  deposit,  at  the  close 
of  such  examination.  Whenever  the  insurance  department  of  any  other 
state  shall  charge  a  per  diem  fee  for  examination  of  companies  of 
this  state,  then  insurance  companies  of  such  other  state  shall  be  re- 
quired to  pay  the  same  fee  per  diem  when  examined  by  the  insurance 
department  of  this  state.  Such  examination  fees  shall  be  paid  into 
the  state  treasury. 

6.  The  commissioner  may  employ  such  persons  at  such  compensa- 
tion fixed  by  him  in  advance  as  may  be  necessary  and  reasonable  for 
the  making  of  any  examination,  investigation  or  prosecution  provided 
for  by  law. 

8.  Such  actual  and  reasonable  expenses  shall  include  only  actual 
disbursements  for  railroad  fare  and  other  public  conveyance  by  the 
most  usual   and   most   direct    or   most    traveled    route,   sleeper,   meals. 


Ch.  89  197  1969 

rooms,    postage,    telegraph,    telephone,    public   messenger    and    steno- 
graphic service. 

Section  1968  is  refei~red  to  in  section  20.55. 

Testimony;       depositions;       witnesses;       compelling     attendance; 
stenographer;    fees. 

Section  1968f.  1.  The  commissioner  of  insurance  shall  have  power 
to  administer  oaths  and  to  i-equire  and  compel  the  attendance  of  wit- 
nesses and  the  production  of  papers,  books,  accounts,  documents, 
records,  and  other  testimony,  in  any  investigation,  examination,  action, 
or  proceeding  which  he  is  authorized  to  make,  hear  or  determine.  The 
commissioner  or  any  party  may,  in  any  such  investigation,  examina- 
tion, action,  or  proceeding,  cause  the  depositions  of  witnesses  residing 
within  or  without  the  state  to  be  taken  in  the  manner  prescribed  by 
law  for  like  depositions  in  civil  actions  in  circuit  court. 

2.  The  provisions  of  section  1797 — 13  shall  apply  to  any  case  of  dis- 
obedience on  the  part  of  any  person  or  persons  to  comply  with  any  order 
of  the  commissioner  or  any  subpoena,  or  on  the  refusal  of  any  such 
witness  to  testify  in  such  case. 

3.  The  commissioner  shall  also  have  power  to  employ  such  steno- 
graphic assistance  as  necessary  for  the  taking  and  preservation  of  such 
testimony. 

4.  The  same  fees  shall  be  paid  for  the  service  of  such  process  and 
for  the  travel  and  attendance  of  such  witnesses  and  for  the  taking  of 
such  depositions  as  provided  by  statute  for  civil  cases  in  the  circuit 
court,  and  the  fees  for  stenographic  service  shall  not  exceed  the  sum 
so  provided  for  such  services  in  the  circuit  court.  Payment  thereof 
shall  be  made  out  of  the  state  treasury  upon  the  warrant  of  the  secre- 
tary of  state  authorized  by  the  certificate  of  the  commissioner  of  in- 
surance, and  charged  to  the  proper  appropriation  for  the  commissioner 
of  insurance. 

Restoration  of  capital. 
Section  1969.  Any  insurance  corporation  which  shall  have  been  di- 
rected to  require  its  capital  to  be  made  good,  as  required  in  the  pre- 
ceding* section,  shall  forthwith  call  upon  its  stockholders  for  the 
necessary  amount,  and  in  case  any  stockholder  of  such  corporation  or- 
ganized under  the  laws  of  this  state  shall  refuse  to  pay  the  amount 
so  called  for,  after  notice  personally  given  or  by  advertisement  in 
such  time  and  manner  as  the  commissioner  of  insurance  shall  pre- 
scribe,  such  corporation  may  require  the  return  of  the  original  certifi- 
cate of  stock  held  by  him  and  in  lieu  thereof  issue  new  certificates 
for  such  number  of  shares  as  the  said  stockholders  may  be  entitled 
to  in  the  proportion  that  the  ascertained  value  of  the  funds  of  such 
corporation  may  be  found  to  bear  to  the  original  capital;  the  value  of 
such  shares  for  which  new  certificates  shall  be  issued  to  be  ascer- 
tained under  the  direction  of  said  commissioner,  the  corporation  pay- 
ing for  the  fractional  parts  of  shares;   and  the  directors  may  create 

'Refers  to  section  1966 — ^6. 


1970m  198  Ch.  89 

new  stock  and  dispose  of  the  same  to  an  amount  sufficient  to  make  up 
the  original  capital;  and  in  the  event  of  any  additional  losses  accruing 
from  new  risks  taken  after  the  expiration  of  the  period  limited  by  said 
commissioner  for  the  filling  up  of  the  deficiency  in  the  capital,  and 
before  such  deficiency  shall  have  been  made  up,  the  directors  or  trus- 
tees shall  be  individually  liable  to  the  extent  thereof.  The  transfer  of 
the  stock  of  any  such  corporation,  made  during  the  pending  of  such  in- 
vestigation, shall  not  release  the  party  making  the  transfer  from  his 
liability  for  losses  which  may  have  occurred  previous  to  such  transfer. 

Reduction  of  capital. 
Section  1970.  Whenever  it  shall  appear  to  the  commissioner  of  in- 
surance, from  an  examination  thereof,  that  the  capital  stock  of  any 
stock  insurance  corporation  organized  under  any  law  of  this  state  is 
impaired  to  an  amount  exceeding  twenty-five  per  cent  thereof,  and  he 
shall  be  of  opinion  that  the  interests  of  the  public  will  not  be  prejudiced 
by  permitting  such  corporation  to  continue  with  a  reduced  capital,  such 
corporation  may,  with  his  permission,  reduce  its  capital  and  the  par 
value  of  the  shares  thereof  to  such  amount  as  he  shall  certify  to  be  in 
his  opinion  justified  by  the  assets  and  property  of  such  corporation; 
but  no  part  of  such  assets  and  property  shall  be  distributed  to 
the  stockholders,  nor  shall  the  capital  stock  of  such  corporation  be  re- 
duced in  any  case  to  an  amount  less  than  the  sum  required  by  law  for 
the  organization  of  a  new  corporation  for  the  transaction  of  the  same 
kind  of  business  at  a  place  where  such  corporation  is  located.  Such  a 
reduction  of  the  capital  stock  shall  only  be  made  by  adoption  of  a  reso- 
lution by  its  directors,  approved  and  signed  by  at  least  two-thirds  of 
the  directors,  and  by  its  president,  with  the  corporate  seal  fixed,  and 
filed  in  the  office  of  the  commissioner  of  insurance.  Upon  the  filing  of 
such  resolution  the  commissioner  of  insurance  shall  execute  a  new 
patent  to  such  corporation  to  conform  with  such  reduced  capital,  and 
the  articles  of  organization  shall  be  deemed  to  be  amended  accordingly 
in  respect  to  the  amount  of  its  capital  and  of  the  par  value  of  its 
shares  so  as  to  conform  to  such  reduction.  Such  corporation  may  re- 
quire the  return  of  the  original  certificate  of  stock  held  by  each  stock- 
holder and  in  lieu  thereof  issue  new  certificates  of  such  number  of 
shares  each  stockholder  may  be  entitled  to. 

Delinquent  or  insolvent  companies;  liquidation;  commissioner's 
application  to  court. 

Section  1970m.  1.  The  commissioner  of  insurance  may  apply  on  a 
verified  petition  to  the  circuit  court  or  the  presiding  judge  thereof,  in 
the  county  in  which  the  home  office  of  any  domestic  insurance  com- 
pany or  fraternal  or  mutual  benefit  society  is  located,  for  the  order 
mentioned  in  the  following  subsection,  whenever  such  company  or 
society: 

(a)  Is  insGlvent;  or 


Ch.  89  199  1970m— 3 

(b)  has  refused  to  submit  its  books,  papers,  accounts,  or  affairs  to 
the  reasonable  inspection  and  examination  of  the  commissioner,  his 
deputy,  or  examiner;  or 

(c)  has  neglected  or  refused  to  obey  an  order  of  the  commissioner 
to  make  good  within  the  time  prescribed  by  such  order  pursuant  to  law 
any  deficiency,  whenever  its  capital,  if  a  stock  company,  or  its  reserve, 
if  a  mutual  company,  shall  have  become  impaired;  or 

(d)  has,  by  contract  of  reinsurance  or  otherwise,  transferred  or  at- 
tempted to  transfer  its  entire  property  or  business,  or  entered  into  any 
transaction,  the  effect  of  which  is  to  merge  substantially  its  entire 
property  or  business  in  the  property  or  business  of  any  other  company 
or  society,  without  having  first  obtained  the  written  approval  of  the 
commissioner;  or 

(e)  is  found,  upon  examination,  to  be  in  such  condition  that  its 
further  transaction  of  business  will  be  hazardous  to  its  policyholders, 
or  to  its  creditors,  or  to  the  public;  or 

(f)  has  wilfully  violated  its  charter  or  articles  of  incorporation,  or 
any  law  of  the  state;  or 

(g)  any  officer  thereof  has  refused  to  be  examined  on  oath  touching 
its  affairs. 

Order  to  show  cause;  injunction;  discharge. 
2.  (a)  On  such  application,  an  order  may  be  made  directing  the 
company  or  society  to  show  cause  why  the  commissioner  should  not 
take  possession  of  its  property  and  conduct  its  business,  and  for  such 
other  relief  as  the  nature  of  the  case  and  the  interests  of  its  policy- 
holders, creditors,  stockholders,  and  the  public  may  require. 

(b)  The  court  may  also,  at  any  time  after  such  application,  issue 
an  injunction  restraining  such  company  or  society  from  the  transac- 
tion of  its  business  or  disposition  of  its  property,  and  may  authorize 
the  commissioner  to  immediately  enter  into  the  possession  of  such  prop- 
erty and  the  conduct  of  such  business,  until  the  further  order  of  the 
court. 

(c)  On  the  return  of  the  order  to  show  cause,  and  after  a  full  hear- 
ing, the  court  shall  either  deny  the  application  or  direct  the  commis- 
sioner forthwith  to  take  possession  of  the  property  and  conduct  the 
business  of  such  company  or  society,  and  retain  such  possession  and 
conduct  such  business  until  on  the  application  of  the  commissioner  or 
of  such  company  or  society,  it  shall  after  a  like  hearing  appear  to  the 
court  that  the  ground  for  such  order  has  been  removed  and  that  such 
company  or  society  can  properly  and  safely  resume  possession  of  its 
property  and  the  conduct  of  its  business. 

Liquidation. 

3.  If,  on  a  like  application  and  order  to  show  cause,  and  after  a 
full  hearing,  the  court  shall  order  the  liquidation  of  the  business  of 
such  corporation,  such  liquidation  shall  be  made  by  and  under  the 
direction  of  the  commissioner,  who  may  deal  with  the  property  and 


1970m— 7  200  Ch.  89 

business  of  such  company  or  society  in  his  own  name  as  commis- 
sioner, or  in  the  name  of  the  company  or  society,  as  the  court  may 
direct,  and  shall  be  vested  by  operation  of  law  with  the  title  to  all 
of  the  property,  contract,  and  rights  of  action  of  such  company  or 
society,  as  of  the  date  of  the  order  so  directing  him  to  liquidate. 
The  filing  or  recording  of  such  order  shall  impart  the  same  notice 
that  a  deed,  bill  of  sale,  or  other  evidence  of  title  duly  filed  or  re- 
corded by  such  company  or  society  would  have  imparted. 

Special  employes. 

4.  For  the  purpose  of  this  section,  the  commissioner  shall  have  power 
to  appoint,  under  his  hand  and  official  seal,  one  or  more  special  depu- 
ties as  his  agent  or  agents,  and  to  employ  such  counsel,  clerks,  and 
assistants  as  may  by  him  be  deemed  necessary.  The  commissioner, 
his  deputy,  examiner,  and  special  deputies  shall  have  power  to  compel 
the  production  of  books,  papers,  and  documents  and  to  administer 
oaths  and  examine  and  take  the  testimony  of  any  person  with  regard 
to  the  business  affairs  and  condition  of  such  company  or  society. 
The  compensation  of  such  special  deputies,  counsel,  clerks,  and  as- 
sistants, and  all  expenses  of  taking  possession  of  and  conducting  the 
business  of  liquidating  any  such  company  or  society  shall  be  fixed 
by  the  commissioner,  subject  to  the  approval  of  the  court,  and  shall, 
on  certificate  of  the  commissioner,  be  paid  out  of  the  funds  or  assets 
of  such  company  or  society. 

Regulations. 

5.  For  the  purposes  of  this  section,  the  commissioner  shall  have 
power,  subject  to  the  approval  of  the  court,  to  make  and  prescribe 
such  rules  and  regulations  as  to  him  shall  seem  proper. 

Report. 

6.  The  commissioner  shall  transmit  to  the  legislature,  in  his  annual 
report,  the  names  of  the  companies  or  societies  so  taken  possession 
of.  whether  the  same  have  resumed  business  or  have  been  liquidated, 
and  such  other  facts  as  shall  acquaint  the  policyholders,  creditors, 
stockholders,  and  the  public  with  his  proceedings  under  this  section; 
and  to  that  end,  the  special  deputy  in  charge  of  any  such  company  or 
society,  shall  file  annually  with  the  commissioner,  a  report  of  the 
affairs  of  such  company  or  society. 

Section   applies  to  promoters. 

7.  The  provisions  of  this  section  shall  extend  to  the  promoters,  or- 
ganizers, trustees,  or  ofher  persons  having  charge  of  the  property 
or  affairs  of  any  domestic  insurance  company  or  fraternal  or  mutual 
benefit  society  proposed  or  attempted  to  be  organized,  including  also 
any  corporation  organized  or  proposed  to  be  organized  to  hold  or 
control  the  stock  or  securities  of  any  such  insurance  company,  and 
to   any  property   within   the  jurisdiction  of  the   courts   of   this   state 


Ch.  89 


201  19700 


belonging  to   any  local  or  foreign  company,   society,   or  corporation, 
whether  organized  or  proposed  to  be  organized. 

Section  1070ni  is  referred   to  in  1970n. 

Insolvency,  commissioner  to  have  power  given  to  commissioner  of 
banking. 

Section  1970n.  As  an  alternative  and  in  addition  to  the  provisions 
of  section  1970m,  all  the  powers  and  authority  conferred  upon  the 
commissioner  of  banking,  by  section  2022  or  any  amendment  thereto 
as  to  banking  corporations,  are  hereby  conferred  upon  and  extended 
to  the  commissioner  of  insurance  as  to  all  insurance  companies  and 
fraternal  or  mutual  benefit  societies. 

Actions  by  state  against  insurance  companies  to  enforce   liability 
to  policyholders  after  expiration  of  license. 

Section  1970o.  Whenever  the  commissioner  of  insurance  shall  be 
satisfied  that  any  insurance  company,  or  fraternal  benefit  society  or 
other  insurer,  theretofore  licensed  to  transact  business  in  this  state, 
whose  license  has  expired  or  has  been  revoked,  does  or  omits  to  do 
any  act  whereby  the  rights  of  policyholders  of  such  company,  society 
or  insurer,  who  are  citizens  of  this  state  or  who  hold  contracts  issued 
or  delivered  in  this  state,  are  adversely  affected,  or  whereby  its  abil- 
ity to  carry  out  its  contracts  with  such  policyholders  is  adversely 
affected,  or  refuses  or  neglects  to  make  the  settlements  with  or  pay- 
ments to  such  policyholders,  or  any  class  of  such  policyholders  fairly 
required  under  its  contracts,  or  in  any  other  respect  fails  to  carry 
out  the  agreements  in  its  contracts  with  all  or  any  class  of  such  pol- 
icyholders, he  may,  with  the  written  consent  of  the  governor  and 
attorney-general,  made  after  such  company,  society  or  insurer,  shall 
have  had  notice  of  and  an  opportunity  for  a  full  hearing  before  the 
governor,  attorney-general  and  commissioner  of  insurance,  bring  an 
action  in  the  name  of  the  state  of  Wisconsin  for  and  in  behalf  of 
all  policyholders  so  situated  for  the  purpose  of  enforcing  the  rights 
of  all  such  policyholders.  The  attorney-general  shall  act  as  attorney 
for  the  state  in  every  such  action,  and  the  action  shall  be  prosecuted 
and  the  expenses  borne  as  in  other  civil  actions  in  behalf  of  the 
state.  The  company,  society  or  insurer,  shall  be  required  forthwith 
to  file  with  the  commissioner  of  insurance  a  list  giving  the  names 
and  addresses  of  all  policyholders  who  are  citizens  of  this  state  or 
who  hold  contracts  issued  or  delivered  in  this  state,  and  who  are 
affected  by  such  action.  A  notice  of  the  bringing  of  such  action 
shall  be  forwarded  by  mail  by  the  commissioner  of  insurance  to 
every  such  policyholder,  or  in  like  manner  by  the  company,  society 
or  insurer,  to  every  such  policyholder  when  the  commissioner  of 
insurance  shall  so  order.  Any  policyholder  affected  by  such  action 
may  intervene  and  appear  therein  in  person  or  by  attorney.  A  state- 
ment of  every  action  so  brought  shall  be  made  in  the  annual  report 
of  the  commissioner  of  insurance. 


1971  202  Ch.  89 

Order  of  commissioner;  service  of  notice. 
Section  1970p.  1.  Notice  of  the  making  of  any  order  by  the  com- 
missioner of  insurance  may  be  given  by  sending  to  any  company, 
society,  or  person  affected  thereby,  a  copy  of  such  order  by  prepaid 
registered  mail,  the  service  of  which  notice  shall  be  complete  upon 
the  delivery  or  tender  of  the  same  to  such  company,  society,  or  per- 
son by  the  postal  authorities,  and  may  be  proved  by  the  receipt  of 
the  addressee  on  the  form  used  by  the  postal  authorities. 

Rehearing  by  commissioner. 

2.  Within  ten  days  after  receiving  from  the  commissioner  of  in- 
surance written  notice  of  the  making  of  any  order  authorized  by 
law,  and  not  thereafter,  the  company,  society,  or  person  affected 
thereby,  by  verified  petition  specifying  the  reasons  therefor,  may 
ask  for  a  rehearing  and  review  thereof  before  the  commissioner, 
which  shall  be  had  within  ten  days  unless  such  company,  society, 
or  person  shall  request  otherwise,  and  the  final  order  shall  be  made 
within  three  days  after  the  close  of  such  hearing.  All  evidence  pre- 
sented on  such  hearing  shall  be  carefully  preserved. 

Procedure  for  court  review;    exception. 

3.  Any  such  final  order  may  be  reviewed  in  the  circuit  court  for 
Dane  county,  subject  to  removal  as  in  other  cases,  provided: 

(a)  The  application  for  such  review  stating  the  grounds  thereof 
shall  be  made  and  notice  given  to  the  commissioner  within  ten  days 
after  notice  of  such  final  order,  and  not  otherwise. 

(b)  Such  application  shall  be  heard  upon  all  the  evidence  presented 
before  the  commissioner  and  no  further  or  additional  evidence  shall 
be  presented  before  the  court.  But  the  applicant  shall  be  entitled  to 
a  further  hearing  or  further  hearings  before  the  commissioner,  at 
which  either  party  may  present  additional  evidence  on  which  the 
commissioner  may  make  such  further  order  as  the  case  may  require. 

(c)  That  no  review,  under  this  subsection,  shall  be  had  upon  any 
order  of  the  commissioner  granting  or  refusing  the  license  or  authority 
of  any  company  or  mutual  benefit  society  not  organized  under  the 
laws  of  this  state,  to  transact  business  in  this  state,  where  such  com- 
pany or  society  shall  not  on  the  date  of  the  application  for  such 
license  or  authority,  be  transacting  business  in  this  state  under  a 
license  or  authority  theretofore  granted. 

Statements;  publication. 
Section  1971.  The  commissioner  of  insurance  shall  prepare  and 
furnish  to  each  insurance  corporation  organized  under  the  laws  of 
this  state  and  to  the  attorneys  of  corporations  incorporated  in  other 
states  and  countries,  doing  any  business  of  insurance  in  this  state, 
printed  forms  of  annual  and  other  statements  as  required  by  law  to 
be  made  by  such  corporations,  and  may  make  such  changes  in  such 
forms  as  shall  seem  best  adapted  to  elicit  from  them  a  true  exhibit 


Ch.  89  203  1972a 

of  their  condition  in  relation  to  the  matters  required  by  law  to  be 
reported  to  him;  and  all  such  corporations  shall  make  such  state- 
ments as  required  by  said  commissioner;  and  he  may,  for  such  rea- 
sons as  he  shall  deem  sufficient,  extend  the  time  for  filing  such  an- 
nual statements,  but  not  exceeding  sixty  days.  He  shall  cause  the 
information  contained  in  such  statements  to  be  arranged  in  tabular 
form  and  publish  the  same  with  his  report.  Expenses  incurred  by 
the  commissioner  of  insurance  in  carrying  out  the  provisions  of  this 
section  shall  be  charged  to  the  proper  appropriation  for  the  commis- 
sioner of  insurance. 

Fees;  filing  charter;    agents'  licenses. 

Section  1972.  1.  Except  as  otherwise  provided  by  law  there  shall 
be  paid  to  the  state  through  the  commissioner  of  insurance  in  addi- 
tion to  the  fees  elsewhere  in  these  statutes  provided  for,  by  every 
insurance  corporation,  person  or  agent  to  whom  this  chapter  applies, 
the  following  fees: 

(a)  For  filing  the  first  declaration  or  statement,  with  certified  copy 
of  charter,  twenty-five  dollars; 

(b)  For  filing  the  annual  statement  of  any  insurance  corporation, 
twenty-five  dollars; 

(c)  For  each  certificate  of  authority  issued  to  the  agent  of  any  com- 
pany one  dollar.  A  separate  certificate  shall  be  required  for  each 
company  represented  by  an  agent  and  for  each  member  of  any  firm; 

(d)  For  every  certified  copy  of  a  paper  filed  in  his  office,  ten  cents 
per  folio; 

(e)  For  certifying  and  affixing  his  seal  to  any  such  copy  or  any 
other  paper,  fifty  cents. 

(f)  Every  insurance  corporation  of  a  foreign  country  applying  for 
a  license  to  do  business  in  this  state  and  making  a  deposit  with  the 
treasurer  of  this  state  under  the  provisions  of  subsection  4  of  section 
1915,  shall  pay  as  a  fee  therefor  one  dollar  for  each  one  thousand  dol- 
lars of  the  required  deposit,  which  fee  shall  include  the  sum  required 
by  subdivision  (a)   of  subsection  1  of  this  section. 

2.  In  case  two  or  more  corporations  shall  combine  to  effect  insur- 
ance under  a  joint  policy  or  policies,  each  and  every  such  corporation 
so  combining  shall  pay  the  fees  above  provided  the  same  as  if  each 
and  every  one  wrote  separate  policies. 

Section  1972  is  referred  to  in  1959  (30),  1976  (2). 

Proceedings  if  law  violated;  expenses. 
Section  1972a.  The  commissioner  of  insurance  shall  bring  notice 
of  the  violation  of  any  of  the  provisions  of  this  chapter  by  insurance 
companies  to  the  notice  of  any  company  which  shall  have  committed 
the  same;  and  in  case  of  persistent  violation  thereof,  by  any  com- 
pany he  shall,  if  the  company  be  incorporated  under  the  laws  of  this 
state,  report  the  same  to  the  attorney-general;  and  if  it  be  incor- 
porated under  the  laws  of  any  other  state  or  country  he  shall  revoke 
its   authority   to    do    business   in    this    state;    and    upon   satisfactory 


1972h  204  Ch.  89 

evidence  to  him  of  the  violation  of  any  of  such  provisions  by  any 
agent  of  any  such  corporation  he  shall  revoke  the  license  of  such 
agent.  Said  commissioner  shall  also  bring  or  cause  actions  to  be 
brought  to  recover  all  forfeitures  imposed  by  these  statutes  for  a 
violation  of  any  of  their  provisions  by  insurance  companies  or  their 
agents.  It  shall  be  the  duty  of  the  attorney-general  to  prosecute 
in  the  name  of  the  state  or  to  compromise  every  such  forfeiture; 
and  his  necessary  expenses  incurred  in  so  doing,  when  so  certified, 
shall  be  charged  to  the  proper  appropriation  for  the  attorney-gen- 
eral. All  forfeitures  collected  in  such  actions  shall  be  paid  to  the 
state  treasurer  for  the  benefit  of  the  general  fund.  The  insurance 
commissioner  shall  represent  this  state  at  the  annual  meeting  of  the 
national  convention  of  the  insurance  commissioners  of  the  several 
states. 

Commissioner's  report. 
Section  1972b.  The  commissioner  of  insurance  shall  keep  and 
preserve  in  a  permanent  form  a  full  record  of  his  proceedings,  in- 
cluding a  concise  statement  of  the  condition  of  each  insurance  com- 
pany reported,  visited  or  examined  by  him;  and  shall,  annually,  at 
the  earliest  practicable  date  make  a  report  to  the  governor  of  the 
general  conduct  and  condition  of  all  such  companies  doing  business 
in  this  state,  arranged  in  tabular  form  or  in  abstracts,  in  classes, 
according  to  the  different  kinds  of  insurance,  which  report  shall 
also  contain: 

(1)  A  statement  of  all  insurance  companies  authorized  to  do  busi- 
ness in  this  state  during  the  year  ending  the  thirty-first  day  of  De- 
cember next  preceding,  with  their  names,  locations,  amounts  of  capital, 
dates  of  incorporation  and  of  the  commencement  of  business,  and 
kinds  of  insurance  in  which  they  are  engaged  respectively. 

(2)  A  statement  of  such  companies  as  have  ceased  to  do  business 
in  this  state  during  such  year  and  the  reasons  for  the  same;  also  a 
statement  of  those  admitted  during  the  year  and  of  those  refused 
admission,  and  the  reasons  therefor. 

(3)  Any  amendments  to  the  statutes  relating  to  insurance  Avhich  in 
his  judgment  may  be  desirable,  and  such  other  information  and  com- 
ments in  relation  to  insurance  and  the  public  interest  therein  as  he 
deems  fit. 

(4)  The  names  and  compensation  of  the  persons  employed  by  him, 
the  whole  amount  of  the  expenses  of  his  department,  the  amount  of 
taxes  and  fees  paid  by  each  corporation  and  the  amount  and  date  of 
payment  of  the  same  to  the  state  treasurer.  There  shall  be  printed 
and  in  readiness  for  distribution,  two  thousand  copies  of  the  fire  and 
marine  report,  two  thousand  five  hundred  copies  of  the  life,  casualty 
and  surety  report  and  two  thousand  five  hundred  copies  of  the  local 
mutual  report  for  the  use  of  the  governor,  legislature  and  department 
of  insurance. 

There  shall  be  printed  and  in  readiness  for  distribution  two  thou- 
sand  copies   of  such   report   for  the  use  of  the  governor,  legislature 


Ch.  S9  205  1973m 

and  department  of  insurance,  and  said  commissioner  may,  in  his 
discretion,  cause  to  be  bound  together  or  separately  the  portions  re- 
lating to  life,  fire,  casualty  and  suretyship  insurance. 

Section  l'.>':2  is  referred  to  in  1959  (30),  1970  (2).     See  section  19700,  1977 — 4. 

Payments;  monthly  report;  examination  of  bootcs. 
Section  1972c.  The  commissioner  of  insurance  shall  make  daily 
payments  to  the  state  treasurer  of  all  fees  and  taxes  received  and 
shall,  oiithe  first  day  of  each  month,  report  in  detail  the  receipts  of 
his  depdWment  during  the  preceding  month  to  the  governor,  secre- 
tary of  state  and  state  treasurer,  together  with  the  date  of  such 
payments  to  the  treasurer;  and  it  shall  be  the  duty  of  the  governor, 
secretary  of  state  and  state  treasurer  to  quarterly  examine  and  audit 
the  books  and  records  of  the  department  of  Insurance. 

IVliSCELLANEOUS   PROVISIONS 

State  treasurer  to  hold  securities. 
Section  1973.  The  state  treasurer,  in  his  official  capacity,  shall 
take  and  hold  on  deposit  the  securities  of  any  life  insurance  corpora- 
tion incorporated  under  the  laws  of  this  state  which  are  deposited 
by  it  for  the  purpose  of  securing  policyholders  and  complying  with 
the  lav/s  of  any  other  state  in  order  to  enable  such  corporation  to 
transact  business  in  such  state,  and  also  to  receive  and  hold  in  trust 
for  the  policyholders  of  any  other  insurance  corporation  of  this  state 
such  bonds,  stocks  or  other  securities  as  may  be  offered  by  such  cor- 
poration; and  upon  the  application  of  such  corporation  to  give  such 
a  certificate  from  year  to  year  of  such  deposit  as  may  be  required 
by  the  laws  of  other  states  in  order  to  the  transaction  of  the  busi- 
ness of  insurance  therein;  every  corporation  depositing  such  secur-- 
ities  shall  have  the  right  to  receive  the  income  thereof  and  to  ex- 
change the  same  from  time  to  time,  according  to  the  laws  of  the 
state  in  which  it  may  be  doing  business,  and  to  withdraw  the  same 
when  it  no  longer  desires  to  maintain  such  deposit. 

Deposit  with  state  treasurer  for  payment  of  fees;  withdrawal  of 
balance. 

Section  1973m.  Any  insurance  company,  fraternal  benefit  society 
or  other  insurer  required  to  pay  any  fees  to  the  state  through  the 
commissioner  of  insurance,  may,  subject  to  the  approval  of  said  com- 
missioner, make  a  deposit  with  the  state  treasurer,  from  which  any 
such  fees  shall  be  paid  and  transferred,  as  ordered  by  the  commis- 
sioner at  specified  times  which  shall  not  be  less  than  twice  each 
year.*  Any  balance  remaining  from  any  such  deposit  at  the  end  of 
any  calendar  year  may  be  audited  by  the  secretary  of  state  upon  the 
certificate  of  said  commissioner,  and  paid  out  of  the  state  treasury. 
There  is  appropriated  a  sufficient  sum  to  carry  out  the  purposes  of 
this  section,  not  exceeding  the  sums  so  deposited. 

'The  last  sentence  of  this  section  is  renumbered  to  be  20.06  (5). 


1976—2  206  Ch.  89 

Nonpayment  of  judgment. 

Section  1974.  No  insurance  corporation  or  mutual  benefit  corpor- 
ation, society,  order  or  association  doing  any  kind  of  insurance  in  this 
state  against  which  a  final  judgment  on  account  of  its  liability  as 
an  insurer  or  as  such  other  corporation  shall  have  been  recovered  in 
any  court  therein  shall,  after  sixty  days  from  the  rendition  of  such 
judgment  and  whilst  the  same  remains  unpaid,  issue  any  new  policy 
or  certificate  of  insurance  in  this  state;  and  in  case  any  such  insur- 
ance or  other  corporation  or  its  officers  shall  violate  the  provisions 
of  this  section  it  shall  forfeit  one  thousand  dollars.  And  any  agent 
of  any  such  corporation  who  shall  knowingly  so  violate  the  same  shall 
forfeit  not  less  than  one  hundred  nor  more  than  five  hundred  dollars; 
provided,  that  if  an  appeal  is  taken  said  sixty  days  shall  not  begin 
to  run  until  after  said  judgment  has  been  affirmed  and  the  decision 
upon  the  repeal  remitted. 

And  in  case  any  order  or  judgment  appealed  from  shall  be  af- 
firmed in  any  action  or  judicial  proceeding,  in  which  any  surety  cor- 
poration, company  or  association  authorized  to  issue  bonds  or  under- 
takings in  any  such  action  or  proceeding  shall  have  executed  or 
issued  any  such  bond  or  undertaking  as  a  condition  of  a  stay  of 
proceedings  upon  such  order  or  judgment  so  affirmed,  or  to  guar- 
antee the  payment  or  performance  thereof,  if  such  surety  company 
shall  not,  within  thirty  days  after  notice  of  the  filing  of  the  remit- 
titur, fully  perform  its  undertaking  in  respect  thereto,  it  shall  for- 
feit its  right  or  license  to  transact  such  business  in  this  state  until 
such  order  or  judgment  shall  have  been  fully  paid,  performed  or 
complied  with  in  accordance  with  the  terms  and  conditions  of  such 
undertaking. 

Agent's  licenses;    exceptions. 

Section  1976.  1.  No  person,  officer,  or  broker,  agent  or  subagent 
of  any  insurance  corporation  of  any  kind  required  to  pay  any  tax  or 
license  fee  to  the  state  shall  act  or  aid  in  any  manner  In  transacting 
the  business  of  or  with  such  corporation  in  placing  risks  or  in  col- 
lecting any  premiums  or  assessments  or  effecting  insurance  therein, 
without  first  procuring  from  the  insurance  corporation  a  certificate 
of  authority;  nor  shall  any  such  person,  officer,  broker,  agent,  or 
subagent,  after  such  certificate  shall  have  expired,  or  after  revoca- 
tion by  the  commissioner  of  insurance  of  such  certificate  or  of  the 
license  of  such  corporation  and  until  a  new  certificate  or  license 
shall  have  been  issued  to  him,  do  or  perform  any  such  act  for  or  in 
behalf  of  any  insurance  corporation.  The  exceptiohs  herein  shall 
not  apply  to  mutual  insurance  corporations  or  fraternal  benefit  so- 
cieties not  maintaining  a  lodge  system  which  corporations  or  so- 
cieties issue  only  policies  of  health  or  accident  insurance  or  both. 

Issue  by  company;    return  to  commissioner. 
2.  No   such   certificate  shall   be  issued   by  any   other  than   the   offi- 
cers  or   resident   agent   of   such   corporation   signing   the    policies   of 


Ch,  SO  207  1976—7 

insurance  issued  by  it  or  a  person  duly  authorized  thereto  in  writing 
by  such  officers  or  resident  agent,  after  a  copy  of  such  authority 
has  been  filed  in  the  office  of  the  commissioner  of  insurance;  nor 
unless  the  same  shall  be  in  such  form  as  prescribed  by  the  commis- 
sioner of  insurance  and  numbered  consecutively  as  issued  by  the 
person  authorized  thereto,  and  a  statement  or  statements  of  the 
names  and  residences  of  all  persons  to  whom  such  certificates  are 
issued  on  any  day,  in  such  form  as  prescribed  by  the  commissioner, 
together  with  the  fees  provided  for  certificates  to  agents  by  section 
1972,  shall  be  mailed  to  said  commissioner  on  the  day  such  certifi- 
cates are  issued. 

Certificates  in  force;    not  affected. 

3.  All  certificates  of  authority  heretofore  issued  under  this  section 
shall  remain  in  force  until  the  time  of  their  expiration  or  revocation 
as  heretofore  provided  by  law,  and  all  certificates  hereafter  issued  shall 
expire  annually  upon  the  expiration  of  the  license  of  the  company 
issuing  the  same,  unless  previously  revoked,  pursuant  to  law. 

Penalty;    forfeiture. 

4.  Any  person  violating  the  provisions  of  this  section  shall  be  pun- 
ished by  a  fine  of  not  more  than  five  hundred  dollars  for  each  offense. 
Any  company  violating  subsection  2  of  this  section  shall  pay  five  times 
the  amount  of  fees  upon  each  license  included  in  such  violation. 

License,  division  of  commissions,  exceptions. 

5.  No  person  shall  be  required  to  hold  such  certificate  of  authority 
from  more  than  one  company  for  the  purpose  of  acting  as  agent  and 
receiving  commissions  for  transacting  the  kind  or  kinds  of  insurance 
authorized  by  such  certificate  for  any  other  company  in  co-operation 
with  any  person  holding  such  certificate  of  authority  for  such  other 
company.    This  subsection  shall  not  apply  to  life  insurance. 

No  license  to  corporation. 

6.  No  corporation  or  stock  company  shall  be  licensed  as  agent  of 
any  insurance  company  for  the  purpose  mentioned  in  subsection  1. 

Section  1976  is  referred  to  in  19i3m  (1),  1955o  (2). 

Life  insurance  agent's  qualifications. 

7.  Upon  written  notice  by  a  life  insurance  company  authorized 
to  transact  business  in  this  state  of  its  appointment  of  a  person  to 
act  as  its  agent  herein,  the  insurance  commissioner  shall,  if  he  is 
satisfied  that  the  appointee  is  a  trustworthy  and  reliable  person  and 
Intends  to  hold  himself  out  in  good  faith  as  a  life  insurance  agent, 
issue  to  him  a  license  which  shall  state,  in  substance,  that  the  com- 
pany is  authorized  to  do  business  in  this  state,  and  that  the  person 
named  therein  is  the  constituted  agent  of  the  company  in  this  state 
for  the  transaction  of  such  business  as  it  is  authorized  to  transact 
herein.     Such   notice  shall  be  upon  a  form  furnished  by  the   insur- 


J977  208  Ch.  89 

ance  commissioner  giving  such  information  as  he  may  require,  and 
shall  be  accompanied  by  a  statement  under  oath  by  the  appointee 
which  shall  give  his  name,  age,  residence,  occupation,  his  occupation 
for  the  five  years  next  preceding  the  date  of  the  notice,  and  such 
other  information,  if  any,  as  the  insurance  commissioner  may  re- 
quire. Such  license  shall  be  executed  in  triplicate;  one  copy  thereof 
shall  be  filed  in  the  office  of  the  commissioner  (which  copy  may  be 
oi  a  form  and  size  deemed  most  comvenient  for  filing)  and  one  copy 
thereof  shall  be  sent  to  such  agent,  and  one  copy  to  the  company. 
The  insurance  commissioner  may  at  any  time  after  the  granting  of 
such  license,  for  cause  shown,  and  after  a  hearing,  determine  any 
person  so  appointed,  or  any  person  theretofore  appointed  as  agent, 
to  be  untrustworthy  and  unreliable  to  act  as  such  agent,  and  shall 
thereupon  revoke  such  license  and  notify  both  the  company  and  the 
agent  of  such  revocation.  Unless  revoked  by  the  commissioner,  or 
unless  the  company  by  written  notice  to  the  commissioner  cancels 
the  agent's  authority  to  act  for  it,  such  license  and  any  other  license 
issued  to  an  agent  or  any  renewal  thereof  shall  expire  on  the  first 
day  of  March  next  after  its  issue.  But  any  license  issued  and  in 
force  when  this  act  takes  effect,  or  thereafter  issued,  may,  in  the 
discretion  of  the  commissioner,  be  renewed  to  act  for  such  company 
for  a  succeeding  year  or  years  by  a  renewal  application  for  such  li- 
cense from  such  insurance  company  upon  a  form  furnished  by  the 
commissioner.  While  such  license  remains  in  force  a  foreign  com- 
pany shall  be  bound  by  the  acts  of  the  persons  named  therein  within 
his  apparent  authority  as  its  acknowledged  agent.  Any  agent  whose 
license  has  been  revoked  for  withholding  or  converting  to  his  own 
use  premiums  collected,  or  discounting  a  note  taken  in  payment  of 
a  premium  before  the  issuance  and  delivery  of  the  policy  to  the  in- 
sured, or  for  misrepresentation  of  the  conditions,  privileges  or  ben- 
efits of  a  policy,  or  the  financial  or  other  condition  of  a  company,  or 
for  wilfully  and  with  intent  to  deceive  misrepresenting  the  condi- 
tion of  any  applicant  as  an  insurance  risk,  or  for  twisting,  or  for 
violation  of  the  insurance  laws  of  this  state,  shall  be  debarred  from 
having  such  license  renewed  for  a  period  of  not  less  than  six  months 
nor  more  than  three  years,  as  the  commissioner  shall  deem  appro- 
priate. 

Filing  certificates;  destruction  after  six  years. 
Sectiox  1976m.  The  commissioner  of  insurance  shall  keep  in  his 
office  a  complete  file  of  all  certificates  of  authority  issued  in  accord- 
ance with  section  1976;  provided,  that  he  may  at  any  time  order  the 
destruction  of  any  such  certificates  heretofore  or  hereafter  filed  which 
shall  have  been  filed  in  his  office  for  not  less  than  six  years. 

Who  are  agents. 
SEfTiox  1977.     Every  person  or  member  of  a  firm  or  corporation  who 
solicits   insurance   on   behalf  of  any  insurance  corporation   or  person 
desiring   insurance   of   any   kind,   or   transmits   an   application   for   a 


Ch.  89  209  1977—3 

policy  of  insurance,  other  than  for  himself,  to  or  from  any  such  cor- 
poration, or  who  makes  any  contract  for  insurance,  or  collects  any 
premium  for  insurance,  or  in  any  manner  aids  or  assists  in  doing 
either,  or  in  transacting  any  business  of  like  nature  for  any  insurance 
corporation,  or  advertises  to  do  any  such  thing,  shall  be  held  to  be  an 
agent  of  such  corporation  to  all  intents  and  purposes,  unless  it  can  be 
shown  that  he  receives  no  compensation  for  such  services.  This 
section  shall  not  apply  to  agents  of  licensed  fraternal  beneficiary 
societies,  or  mutual  fire  insurance  companies  of  this  state  except 
those   organized   under   sections   1896,   1897    and   1898. 

Insurance,  application  for;  warranty;  effect  of. 
Section  1977 — 1.  No  oral  or  written  statement,  representation,  or 
warranty  made  by  the  insured  or  in  his  behalf  in  the  negotiation  of 
a  contract  of  insurance  shall  be  deemed  material  or  defeat  or  avoid 
the  policy,  or  prevent  its  attaching  unless  such  statement,  representa- 
tion, or  warranty  was  false  and  made  with  actual  intent  to  deceive  or 
unless  the  matter  misrepresented  or  made  a  warranty,  Increased  the 
risk  or  contributed  to  the  loss. 

Insurance  policy;    warranty;    effect. 

2.  No  warranty  incorporated  in  a  contract  of  insurance  relating  to 
any  fact  prior  to  a  loss  shall  defeat  or  avoid  such  policy  unless  the 
breach  of  such  warranty  increased  the  risk  at  the  time  of  the  loss, 
or  contributed  to  the  loss,  or  unless  such  breach  existed  at  the  time  of 
the  loss. 

3.  The  provisions  of  this  section  shall  apply  to  fraternal  or  mutual 
benefit  societies. 

Formerly  section  Jf202m. 

Representations,  physician's  certificate. 

Section  1977 — 2.  In  any  case  where  the  medical  examiner,  or  physi- 
cian acting  as  such,  of  any  life  or  disability  insurance  company  or 
association  doing  business  in  this  state,  shall  issue  a  certificate  of 
health  or  declare  the  applicant  a  fit  subject  for  insurance,  or  so  re- 
port to  the  company  or  association  or  its  agent  under  the  rules  and 
regulations  of  such  company  or  association,  it  shall  thereby  be 
estopped  from  setting  up  in  defense  of  an  action  on  such  policy  or 
certificate  that  the  insured  was  not  in  the  condition  of  health  re- 
quired by  the  policy  at  the  time  of  the  issue  or  delivery  thereof,  un- 
less the  same  was  procured  by  or  through  the  fraud  or  deceit  of  the 
insured.  The  provisions  of  this  section  shall  apply  to  fraternal  or 
mutual  benefit  societies. 

Formerly  section  J,202s. 

Company  bound  by  knowledge  of  agent. 

Section  1977 — 3.  1.  Knowledge  of  an  agent  of  a  fire,  casualty  or 
marine  insurance  company  at  the  time  a  policy  is  issued  or  an  applica- 
tion made  shall  be  knowledge  of  the  company,  and   any  fact  which 


1978h  210  Ch.  89 

breaches  a  condition  ot  the  policy  and  is  known  to  the  agent  when 
the  policy  is  issued  or  the  application  made  shall  not  void  the  policy 
or  defeat  a  recovery  thereon  in  the  event  of  loss. 

Error  in  name  not  to  avoid  policy. 
2.  Error  or  mistake  in  designating  the  person  to  whom  the  insur- 
ance is  payable  in  a  policy  of  fire  insurance  shall  not  void  the  policy 
notwithstanding  its  terms,  unless  it  shall  be  found  as  a  fact  that 
such  error  or  mistake  was  due  to  fraud,  misrepresentation  or  con- 
cealment on  the  part  of  the  owner  of  the  property,  or  the  person 
representing  him,  in  procuring  the  issue  of  the  policy,  or  that  the 
company  would  not  have  issued  or  continued  the  policy  if  it  had 
known  the  facts. 

Schedule  of  commissions  to  agents. 
Section  1977 — 4.    Every  company  shall  at  or  prior  to  the  filing  of  its 
application  for  license  or  any  renewal  thereof  file  a  schedule  of  per- 
centages or  kinds  of  commissions  paid  to  Its  agents  within  this  state; 
provided,  that  the  amount  of  any  fixed  salary  need  not  be  specified. 

Formerly  lOTTa  (1). 

All  insurers  to  comply  with  law. 
Section  1978.  No  corporation,  association,  partnership  or  indi- 
vidual shall  do  any  business  of  insurance  of  any  kind,  or  make  any 
guarantj%  contract  or  pledge  for  the  payment  of  annuities  or  endow- 
ments or  money  to  the  families  or  representatives  of  any  policy  or 
certificate  holder,  or  the  like,  in  this  state  or  with  any  resident  of 
this  state  except  according  to  the  conditions  and  restriction  of  these 
statutes.  And  the  term  insurance  corporation  as  used  in  this  chapter 
may  be  taken  to  embrace  every  corporation,  association,  partnership  or 
individual  engaging  in  any  such  business. 


STATE    INSURANCE    FOR    PUBLIC   BUILDINGS 

Powers  annulled. 

Section  1978a.  No  officer  or  agent  of  this  state,  and  no  person  or 
persons  having  charge  of  any  public  buildings  or  property  of  the  state, 
shall  pay  out  any  public  moneys  or  funds  on  account  of  any  insurance 
against  loss  by  fire  or  tornado,  or  shall  in  any  manner  contract  for  or 
incur  any  indebtedness  against  the  state  on  account  of  any  such 
insurance  upon  any  of  the  public  buildings,  furniture,  fixtures  or 
property  of  any  kind  whatever  belonging  to  the  state  except  in  the 
manner   hereinafter   provided. 

Section    i:nsa   i.i  referred  to  in  sees.   1978(1.   197Se. 

State  insurance  fund. 
Section  1978b.     Upon  July  first,  annually,  the  commissioner  of  in- 
surance of  the  state  shall  provide  for  the  insurance  by  the  state  of 


Ch.  89  211  1978c 

all  state  property  subject  to  destruction  by  fire  for  an  amount  equal 
to  ninety  per  cent  of  the  cash  value  of  such  property,  except  that  the 
state  capitol  building  shall  not  be  insured  for  more  than  five 
hundred  thousand  dollars  and  the  state  historical  library  building 
foi  not  more  than  two  hundred  thousand  dollars,  in  the  following 
manner:  First,  he  shall  determine  the  insurable  value  of  each  item 
of  property  and  shall  fix  the  rate  of  insurance  which  in  his  opinion 
is  the  average  rate  charged  by  responsible  fire  and  tornado  insur- 
ance companies  doing  business  in  this  state  and  issuing  insurance 
policies  upon  property  of  similar  kind  and  exposed  to  risk  of  fire  or 
tornado  in  like  manner.  He  shall  then  ascertain  the  amount  of  in- 
surance in  force  upon  all  state  property  and  provide  for  such  addi- 
tional insurance  as  is  necessary  to  cover  said  ninety  per  cent  of  the 
full  value  of  the  property  in  the  following  manner:  He  shall  certify 
to  the  state  treasurer  the  amount  of  insurance  upon  such  property 
to  be  carried  by  the  state  and  order  the  state  treasurer  to  credit  to 
an  account  which  shall  be  kept  by  the  treasurer  and  known  as  the 
"State  Insurance  Fund"  an  amount  equal  to  seventy-five  per  cent 
of  the  premium  as  fixed  by  the  commissioner  of  insurance,  and  the 
amount  so  credited  by  the  state  treasurer  to  the  "state  insurance 
fund"  shall  be  debited  by  the  state  treasurer  to  that  account  which 
shall  be  kept  upon  his  books  with  the  proper  officer,  agent  or  board 
of  trustees  or  regents  which  may  have  such  public  buildings  and 
property  in  its  charge,  and  the  amount  so  debited  by  the  state  treas- 
urer to  said  officer,  agent  or  board  shall  be  deducted  by  him  from 
any  funds  which  may  be  in  his  hands,  or  which  may  thereafter 
come  into  his  hands  and  payable  to  said  officer,  agent  or  board  of 
trustees  or  regents  for  the  care  and  maintenance  of  such  public 
buildings  or  property.  The  commissioner  of  insurance  may  with 
the  approval  of  the  governor  purchase  such  reinsurance  as  may  in 
the  opinion  of  said  commissioner  be  necessary  to  properly  distribute 
the  risk;  provided  no  such  reinsurance  shall  be  effected  when  the  net 
risk  carried  by  the  state  insurance  fund  shall  not  equal  or  exceed  one 
hundred  thousand  dollars  nor  where  the  rate  for  assuming  a  propor- 
tional amount  of  the  risk  shall  exceed  that  received  by  the  state  in- 
surance fund.  The  commissioner  of  insurance  shall  collect  such  rein- 
surance upon  any  loss  and  pay  the  same  into  the  state  insurance  fund. 

Section  1978b  is  referred  to  in  1978d;  J978e. 

Loss;  commissioner  to  adjust;  transfer  of  funds. 
Section  1978c.  1.  In  case  any  buildings  or  property  of  the  state 
shall  be  damaged  by  fire  or  tornado,  the  commissioner  of  insurance 
shall  within  thirty  days  ascertain  and  fix  the  amount  of  such  damage 
and  forthwith  file  with  the  state  treasurer  and  the  secretary  of  state 
a  statement  of  the  same. 

Section  W78c  is  referred  to  in  1978d,  1918e. 

2.  When  the  amount  of  loss  has  been  fixed  and  determined  by  the 
commissioner  of  insurance  and  certified  to  the  secretary  of  state,  the 
secretary  of  state  shall  issue  a  warrant  in  the  amount  fixed  by  the  in- 


1978d  212  Ch.  89 

siirance  commissioner  as  a  transfer  of  the  amount  fixed  as  damages 
from  the  "state  insurance  fund"  and  credited  to  the  proper  fund  of  the 
officer,  board  ol  control,  board  of  trustees,  or  other  agents  in  whose  con- 
trol said  buildings  or  property  belongs,  to  be  used  by  said  officer,  board, 
or  agent  for  the  rebuilding  or  restoring  of  the  property  damaged  and  to 
be  disbursed  by  the  state  treasurer  in  such  manner  as  other  stite  funds 
for  the  use  of  said  officer,  board,  or  agent  are  paid  out,  and  if  at  the  time 
of  any  such  award  of  loss  or  damage  by  the  commissioner  of  insurance, 
there  shall  not  be  in  the  "state  insurance  fund"  an  amount  equal  to  such 
award,  the  secretary  of  state  shall,  notwithstanding  this  fact,  draw  his 
warrant  payable  from  the  general  fund,  and  the  state  treasurer  shall 
promptly  pay  such  warrant  out  of  any  moneys  in  his  hands  in  the  man- 
ner above  provided,  and  the  commissioner  shall  thereafter  from  time  to 
time  order  such  reimbursement  of  the  general  fund  from  the  "state  in- 
surance fund"  as  he  shall  deem  proper,  on  which  order  the  secretary  of 
state  shall  issue  his  warrant  for  such  transfer. 

County,  city  and  village  buildings. 
Section  1978d.  1.  No  county  or  village  board  or  common  council, 
and  no  officer  or  agent  of  any  county,  city  or  village  liaving  charge  of 
any  public  buildings  or  property  of  any  county,  city  or  village,  and  no 
city  council,  village,  town  or  school  district  or  library  board  having 
charge  of  any  public  building  or  property  of  a  school  dis- 
trict located  within  any  incorporated  city  or  village,  shall 
contract  for  or  pay  out  any  money  or  funds  for  insurance,  against 
fire  or  any  other  risk  upon  property,  on  and  after  a  vote  of  such 
board  or  council  to  insure  under  this  section,  except  as  may  be  certi- 
fied by  the  commissioner  of  insurance  to  be  necessary. 

2.  After  such  decision  by  such  board  or  council,  the  clerk  thereof 
shall  report  to  the  commissioner  of  insurance  each  policy  of  insur- 
ance which  shall  then  be  in  force  upon  any  property  of  any  kind 
belonging  to  the  county,  city  or  village  or  to  the  school  district, 
whether  under  the  control  of  such  board  or  council  or  any  other 
board,  officer  or  agent,  stating  the  property  covered  by  such  policy, 
the  date  of  the  issue  and  the  expiration  thereof,  the  amount  and  rate 
of  insurance  and  premium  thereon. 

3.  After  such  decision  by  such  board  or  council,  the  insurance  on 
all  property  of  any  such  county,  city,  town,  village  or  school  dis- 
trict shall  be  provided  for,  and  adjustment  of  losses  made  by  the 
commissioner  of  insurance,  in  the  manner  provided  by  sections  1978b 
and  1978c  for  the  insurance  of  property  of  the  state,  except  that  the 
premium  shall  be  certified  by  the  commissioner  to  the  clerk  of  the 
town,  village,  city,  county  or  school  district.  Upon  receipt  of  such 
certification  of  premium  due,  the  amount  of  the  premium  so  certi- 
fied shall  on  or  before  sixty  days  from  the  date  of  such  certification 
bo  paid  into  the  state  treasury  for  the  benefit  of  the  "state  insur- 
ance fund,"  in  default  of  which  the  .same  shall  become  a  special 
charge  against  such  town,  village,  city,  county,  or  school  district, 
and  be  included   in   the  next  apportionment  or  certification   of  state 


Ch.  89  213  1978d-7 

taxes  and  charged  and  collected  as  other  special  charges  are  col- 
lected, with  interest  at  the  rate  of  ten  per  cent  per  annum  from  the 
date  such  premiums  were  certified  by  the  commissioner.  If  any 
board  or  council  shall  so  order,  the  amount  of  insurance  upon  the 
whole  or  any  part  of  the  property  under  its  control  shall  be  fixed  at 
such  per  centum  or  sum  less  than  the  ninety  per  centum  specified 
ill  section  1978b  as  may  be  fixed  by  such  board  or  council.  Any 
such  board  or  council  may  pay  premiums  in  advance  for  five  years 
by  filing  notice  with  the  commissioner  of  insurance  of  its  intention 
io  to  do,  and  paying  four  times  the  annual  premium  at  the  time  the 
first  annual  premium  becomes  payable. 
4.  Provided,  that  policies  in  force  on  said  date  of  the  passage  of 
a  resolution  to  insure  in  the  "state  insurance  fund,"  shall  remain 
in  force  until  terminated,  as  provided  in  such  policies;  and  that  said 
clerk  shall  give  notice  to  the  commissioner  of  each  such  termina- 
tion, and  the  state  insurance  hereby  provided  for  shall  take  effect 
from  such  termination. 

5.  The  amount  paid  on  account  of  any  loss  shall  be  disbursed  by 
the  county,  city  or  village  treasurer  or  treasurer  having  charge  of 
the  funds  of  the  school  district  in  such  manner  as  other  funds  for 
the  rebuilding  or  replacing  of  any  building  or  other  property,  on  ac- 
count of  which  such  loss  has  been  incurred,  subject  to  the  direction 
of  the  board,  officer  or  agent  having  charge  of  such  building  or  other 
property. 

6.  For  carrying  out  the  provisions  of  sections  1978a,  1978b, 
1978c,  and  this  section,  the  commissioner,  with  the  approval  of  the 
governor,  may  employ  such  assistants  as  necessary,  and  fix  their  com- 
pensation, which  compensation,  together  with  the  expenses  of  such 
assistants  and  of  the  commissioner  and  his  employes  and  the  expenses 
of  conducting  the  "state  insurance  fund,"  shall  be  paid  out  of  the  state 
insurance  fund  on  the  certificate  of  the  commissioner,  audited  by  the 
secretary  of  state.  The  commissioner  of  insurance  shall  make  such 
inspection  and  report  upon  all  property  insured  as  may  be  required. 

7.  Beginning  January  first,  1918,  and  annually  thereafter,  the  state 
treasurer  shall  credit  the  state  insurance  fund  with  interest  on  the 
average  amount  in  such  fund  for  the  preceding  twelve  months  at  the 
average  rate  of  interest  earned  by  the  state  upon  its  bank  deposits 
during  that  period.  If  said  fund  shall  at  any  time  subsequent  to  Jan- 
uary first,  1918,  be  indebted  to  the  general  fund  of  the  state  such  fund 
shall  be  charged,  at  the  end  of  each  calendar  year,  with  interest  on 
such  indebtedness  at  the  average  rate  earned  by  the  state  upon  its 
bank  deposits  during  the  period  of  such  indebtedness  and  such  sum 
shall  be  credited  to  the  general  fund,  provided  that  the  commissioner 
of  insurance  may  with  the  approval  of  the  governor  cause  such  funds 
to  be  invested  in  the  securities  authorized  in  section  1951. 


1989m— 5  214  Ch.  90m 

CHAPTER  90m— STATE  LIFE  INSURANCE 

Life  fund;  purposes. 
Section  1989m.  1.  There  is  established  a  "life  fund"  to  be  ad- 
ministered by  the  state  without  liability  on  the  part  of  the  state,  be- 
yond the  amount  of  the  fund,  for  the  purpose  of  granting  life  insur. 
ance  and  annuities  to  persons  who,  at  the  time  of  the  granting  of  such 
insurance  and  annuities,  are  within  the  state  or  residents  thereof. 

Management  by  treasurer  and   insurance  commissioner. 

2.  The  state  treasurer  shall  be  ex  oflacio  treasurer  and  custodian  of 
the  life  fund,  and  all  other  matters  in  relation  thereto  shall  be  under 
the  supervision  of  the  commissioner  of  insurance.  Each  shall  give 
such  bond  therefor  as  may  be  required  and  approved  by  the  governor 
and  secretary  of  state,  which  shall  be  filed  with  his  official  bond.  Sub- 
ject to  the  general  direction  of  the  commissioner  of  insurance  as  to 
the  amount  to  be  invested,  and  the  kind  and  maturity  of  the  securities, 
and  to  the  approval  of  the  secretary  of  state,  attorney-general,  state 
treasurer  and  commissioner  of  insurance  acting  as  a  board,  the  state 
treasurer  shall  cause  the  moneys  in  the  life  fund  to  be  invested  and 
reinvested  in  the  securities  authorized  in  section  1951,  and  in  like 
manner  may  sell  and  dispose  of  such  securities  as  may  be  necessary 
in  the  management  of  such  fund. 

Forms  and  data. 

3.  Within  two  years  from  the  taking  effect  of  this  section,  the  com- 
missioner of  insurance  shall  prepare  and  file  in  his  office  forms  of 
applications  and  policies,  schedules  of  premiums,  tables  of  costs  of 
Insurance  and  reserve,  and  other  data  and  forms  for  carrying  out  the 
provisions  of  this  act. 

Life  premium  basis. 

4.  The  premiums  for  life  insurance  in  the  life  fund  shall  be  based 
upon  the  American  experience  table  of  mortality  with  additions  for 
extra  hazards,  and  with  interest  at  three  per  cent  per  annum,  to  which 
shall  be  added  for  expenses  and  contingencies  two  dollars  per  year 
per  thousand  dollars  of  insurance,  and  an  amount  distributed  equally 
through  each  of  the  possible  premium  payments,  the  present  value  of 
which  shall  be  equal  to  one-sixth  of  the  present  value  of  the  costs  of 
insurance  on  the  basis  aforesaid. 

Basis  for  annuity  premiums. 

5.  The  premiums  for  annuities  shall  be  based  upon  the  British  offices 
annuity  tables,  1893,  with  interest  at  three  per  cent  per  annum,  with 
additions  tor  expenses  and  contingencies,  distributed  equally  through 
each  of  the  premium  payments,  the  present  value  of  which  shall  be 
one-sixth  of  the  net  single  premium  for  such  annuity. 


Ch.  90m  215  1989m— 9 

Distribution  of  rate  schedules  and  forms. 

6.  Upon  the  filing  of  such  forms,  the  commissioner  of  insurance  shall 
furnish  schedules  of  rates  and  copies  of  the  forms  of  policies  to  every 
state  factory  inspector,  to  the  clerk  and  treasurer  of  every  county, 
town,  city  and  village  and  to  every  state  bank,  whose  duty  it  shall 
be  to  fill  out  and  transmit  applications  for  insurance  and  annuities,  and 
such  schedules  and  rates  shall  also  be  furnished  to  any  other  person 
applying  therefor. 

Application  and  medical  examination. 

7.  The  application  shall  be  transmitted  to  the  commissioner  of  insur- 
ance, together  with  the  premium  for  three  months,  or  multiples 
thereof,  and  a  medical  examination  fee  of  two  dollars  in  case  of  life 
insurance.  The  commissioner  of  insurance  and  the  state  board  of 
health  shall  pass  upon  all  applications  for  insurance,  and  no  life  in- 
surance shall  be  granted  without  a  personal  medical  examination  to  be 
made  at  the  direction  of  the  state  board  of  health,  for  which  the  local 
examiner  shall  receive  the  medical  examination  fee.  If  the  application 
be  rejected,  the  deposit  shall  be  returned,  excepting  the  fees  men- 
tioned in  subsection  13.  No  examination  shall  be  required  on  applica- 
tion for  annuities.  If  the  application  be  accepted,  the  premium  shall 
be  paid  into  the  life  fund  and  a  policy  shall  issue,  to  be  signed  by  the 
commissioner  of  insurance  and  the  state  treasurer,  reciting  that  the 
same  shall  be  payable  out  of  the  life  fund  without  further  liability 
on  the  part  of  the  state. 

Premium  payments  how  and  to  whom  made;    security. 

8.  The  commissioner  of  insurance  shall  provide  the  insured  with 
blanks  to  be  used  in  the  payment  of  premiums,  and  such  premiums 
may  be  paid  to  the  treasurer  of  any  city,  village,  town  or  county,  or  to 
any  state  depository,  who  shall  receipt  for  and  remit  the  same  to  the 
commissioner  of  Insurance.  The  bond  of  every  such  treasurer  and 
state  'depository  shall  include  a  liability  for  all  premiums  and  other 
money  received  for  the  life  fund. 

Surplus,  how  accruing;    distribution. 

9.  A  surplus  shall  be  set  aside  from  the  net  profits  on  each  policy 
which  shall  be  made  up  on  the  following  basis:  Fifty  per  cent  during 
the  first  policy  year,  and  thereafter  five  per  cent  less  for  each  suc- 
ceeding policy  year  until  the  ninth  year,  and  thereafter  the  amount 
so  set  apart  shall  be  ten  per  cent.  The  interest  thereon  shall  also  be 
set  apart  into  such  surplus.  Such  surplus  fund  shall  be  maintained 
and  held  to  meet  losses  from  unexpected  or  great  mortality  or  depre- 
ciation in  securities  or  otherwise.  The  balance  of  the  net  profits  shall 
be  distributed  annually  among  the  holders  of  policies  and  shall  be  pay- 
able on  demand  or  be  applied  to  the  premium  next  payable. 


1989  m— 14  216  Ch.  90  m 

Loans;    premium  loan;    repayment. 

10.  Loans  may  be  made  on  a  policy  to  an  amount,  which  together 
with  interest  at  six  per  cent  per  annum,  shall  not  exceed  the  reserve 
on  the  next  policy  anniversary  on  the  basis  of  the  premiums  then 
paid.  Any  premium  not  paid  when  due  shall  be  charged  as  a  loan. 
When  the  unpaid  loan  and  interest  equals  the  reserve,  the  policy  shall 
terminate,  but  before  that  time  the  whole  or  any  part  of  a  loan  may 
be  repaid. 

Cash  surrender;    notice. 

11.  The  reserve,  less  unpaid  loans  and  interest,  shall  be  payable  in 
cash  on  the  anniversary  of  the  policy  after  six  months'  advance  notice 
to  the  commissioner  in  writing  and  the  surrender  of  the  policy. 

Losses;    adjustment  and  payment. 

12.  The  losses  and  other  payments  required  to  be  made  out  of  the 
life  fund,  including  deposits  for  premiums  upon  applications  which 
shall  be  rejected,  shall  be  audited  by  the  secretary  of  state  upon  the 
adjustment,  order  and  certificate  of  the  state  treasurer,  attorney- 
general  and  commissioner  of  insurance,  acting  as  a  board,  and  be 
paid  by  the  treasurer  out  of  the  life  fund,  and  annuities  shall  be  paid 
in  like  manner. 

Expenses;    fees;    commissions. 

13.  (a)  There  shall  be  audited  by  the  secretary  of  state,  upon  the 
certificate  of  the  aforesaid  board,  and  paid  by  the  state  treasurer 
out  of  the  expense  element  of  the  life  fund  the  compensation  of  clerks 
and  assistants  employed  by  the  commissioner  to  administer  the  life 
fund,  a  fee  of  two  dollars  to  the  medical  examiner  for  each  medical 
examination,  and  the  actual  expense  upon  the  adjustment  of  any  loss 
or  the  defense  or  prosecution  of  any  action.  The  compensation  certified 
by  such  board  due  employes  of  the  state  paid  a  fixed  salary  shall, 
instead  of  being  paid  to  such  employes,  be  transferred  into  the  general 
fund  of  the  state. 

(b)  There  shall  be- retained  by  any  person  insured  paying  direct,  or 
by  any  other  person  transmitting  any  application  for  insurance  or  any 
annuity,  or  collecting  and  transmitting  any  premium,  a  lee  of  twenty- 
five  cents  for  each  application  and  a  fee  of  one  per  cent  on  the  amount 
of  the  premium.  Any  such  other  person  transmitting  an  application  or 
premium  shall  be  held  to  be  the  agent  of  the  insured. 

(c)  Any  fees  or  expenses  to  which  any  person  shall  be  entitled  under 
the  provisions  of  section  1989m  shall,  alter  having  been  paid  into  the 
state  treasury,  be  audited  by  the  secretary  of  state  upon  the  certificate 
of  the  commissioner  of  insurance,  and  be  paid  by  the  treasurer  out  of 
the  life  fund. 

Life   policies;    limits  of  amounts. 

14.  Policies  of  life  insurance  may  be  issued  upon  being  approved  by 
the  commissioner  of  insurance  and  the  state  board  of  health;   but  no 


Ch. 108  217  2347 

policy  or  policies  shall  be  issued  contrary  to  section  1898,  nor  upon 
the  same  risk  in  excess  of  one  thousand  dollars  until  the  number  of 
Insurants  shall  exceed  one  thousand,  nor  in  excess  of  two  thousand 
dollars  until  the  number  of  insurants  shall  exceed  three  thousand,  nor 
at  any  time  in  excess  of  three  thousand  dollars. 

Annuities;    amounts;     limits  of  amounts. 

15.  Annuities  may  be  granted  in  sums -not  exceeding  three  hundred 
dollars  upon  the  same  risk. 

Combination  policies. 

16.  Life  insurance  and  an  annuity  or  annuities  may  be  combined  and 
may  be  granted  in  the  same  policy. 

Accounts;    audit;    reports. 

17.  The  accounts  of  the  life  fund  shall  be  kept  by  the  commissioner 
of  insurance  and  shall  be  audited  in  the  same  manner  as  the  accounts 
of  state  officers.  Valuations  and  reports  shall  be  made  annually,  con- 
forming to  the  reports  required  of  life  insurance  companies  by  the  laws 
of  this  state,  but,  except  as  specifically  provided,  the  other  provisions 
of  the  laws  relating  to  insurance  shall  not  apply  to  the  life  fund. 

Regulations. 

18.  The  commissioner  of  insurance  shall  make  such  reasonable  rules 
and  regulations  for  the  granting  of  life  insurance  and  annuities,  as 
shall  be  necessary  to  carry  out  the  provisions  of  this  act. 


CHAPTER    108— PROPERTY    RIGHTS   OF    MARRIED    WOMAN 

Insurance  of  husband,  son,  etc. 
Section  2347.  Any  married  woman  may,  in  her  own  name  or  in  the 
name  of  a  third  person  as  her  trustee,  with  his  assent,  cause  to  be 
insured  for  her  sole  use  the  life  of  her  husband,  son  or  other  person  for 
any  definite  period  or  for  the  natural  life  of  such  person;  and  any 
person,  whether  her  husband  or  not,  effecting  any  insurance  on  his  own 
life  or  on  the  life  of  another  may  cause  the  same  to  be  made  payable 
or  assign  the  policy  to  a  married  woman  or  to  any  person  in  trust  for 
her  or  her  benefit;  and  every  such  policy,  when  expressed  to  be  for 
the  benefit  of  or  assigned  or  made  payable  to  any  married  woman  or 
any  such  trustee,  shall  be  the  sole  and  separate  property  of  such 
married  woman  and  shall  inure  to  her  separate  use  and  benefit  and 
that  of  her  children,  and  in  case  of  her  surviving  the  period  or  term 
of  such  policy  the  amount  of  the  insurance  shall  be  payable  to  her  or 
her  trustee  for  her  own  use  and  benefit,  free  from  the  control,  dispo- 
sition or  claims  of  her  husband  and  of  the  person  effecting  or  assign- 
ing such  insurance  and  from  the  claims  of  their  respective  representa- 
tives and  creditors.  But  if  the  annual  premium  on  any  such  policy 
shall  exceed  the  sum  of  one  hundred  and  fifty  dollars  and  is  paid  by 


2394—26  218  Ch.  110a 

any  person  with  intent  to  defraud  his  creditors  an  amount  equal  to  the 
premiums  so  paid  in  excess  of  said  sum,  with  interest  thereon,  shall 
inure  to  the  benefit  of  such  creditors,  subject,  however,  to  the  statute 
of  lim.tations.  The  amount  of  any  such  insurance  may  be  made  pay- 
able, in  case  of  the  death  ol'  such  married  woman  belore  the  period 
at  which  it  becomes  due,  to  her  children  or  to  Their  guardian 
for  their  use,  if  under  age,  or  to  any  other  person  as  shall  be  provided 
in  the  policy.  In  such  case  the  receipt  of  such  married  woman  or  of 
such  children,  or  of  their  guardian  if  minors,  shall  discharge  the  insur- 
ance corporation  from  all  further  liability  therefor.  The  provisions 
of  this  section  shall  apply  to  all  insurance  on  lives  effected  before  the 
passage  of  these  statutes. 

Section  23^7  is  referred  to  in  section  29S2  (19). 

Married  woman  may  assign  policy. 

Section  2347b.  Any  married  woman  may,  with  the  written  consent 
of  the  person  effecting  the  insurance,  assign,  Incumber  or  dispose  of 
any  right,  title,  or  interest  she  may  have  in,  to  or  under  any  policy  of 
life  insurance,  whether  on  the  life  of  herself  or  of  her  husband,  or  of 
any  other  person,  and  whether  such  policy  be  expressed  to  be  for  the 
benefit  of  or  assigned  or  made  payable  to  such  married  woman,  or  any 
trustee  for  her,  in  the  same  manner  and  with  like  effect  as  if  she 
were  unmarried. 

The  provisions  of  this  act  shall  apply  to  all  insurance  on  lives, 
whether  effected  before  or  after  the  passage  of  this  act,  but  shall  not 
apply  to  assignments  thereof  heretofore  made. 

CHAPTER  110a— WORKMEN'S  COMPENSATION  AND  INDUSTRIAL 

COMMISSION 

Regulation  of  liability  insurance. 
Section  2394 — 24.  (1)  The  who'.e  claim  for  compensation  for  the 
injury  or  death  of  any  employee  or  any  award  of  judgment  thereon, 
and  any  claim  for  unpaid  compensation  insurance  premiums  shall  be 
entitled  to  the  same  preference  in  bankruptcy  or  insolvency  proceedings 
as  is  given  by  any  law  of  this  state  or  by  the  federal  bankruptcy  act  to 
claims  for  labor,  but  this  section  shall  not  impair  the  lien  of  any 
judgment  entered  upon  any  award. 

Section  2394—26  (1)  Nothing  in  sections  2394—3  to  2394—31,  in- 
clusive, shall  affect  the  organization  of  any  mutual  or  other  Insurance 
company,  or  any  existing  contract  for  insurance  of  employers'  liability, 
nor  the  right  of  the  employer  to  insure  in  mutual  or  other  companies, 
•  ♦  *  against  such  liability,  or  against  the  liability  for  the  com- 
pensation provided  for  by  sections  2394 — 3  to  2394 — 31,  inclusive,  or  to 
provide  by  mutual  or  other  insurance,  or  by  arrangement  with  his 
employes,  or  otherwise,  for  the  payment  to  such  employes,  their  fam- 
ilies, dependents  or  representatives,  of  sick,  accident  or  death  benefits  in 
addition  to  the  compensation  provided  for  by  sections  2394 — 3  to  2394 — 


Ch.  110a  219  2394—27 

31,  inclusive.  But  liability  for  compensation  under  sections  2394 — 3  to 
2394 — 31,  inclusive,  shall  not  be  reduced  or  affected  by  any  insurance, 
contribution  or  other  benefit  whatsoever,  due  to  or  received  by  the 
person  entitled  to  such  compensation,  and  the  person  so  entitled  shall, 
irrespective  of  any  insurance  or  other  contract,  have  the  right  to 
recover  the  same  directly  from  the  employer;  and  in  addition  thereto, 
the  right  to  enforce  in  his  own  name,  in  the  manner  provided  in  sec- 
tions 2394 — 3  to  2394 — 31,  inclusive,  the  liability  of  any  insurance  com- 
pany which  may  *  *  ♦  have  insured  the  liability  for  such  compen- 
sation, and  the  appearance,  whether  general  or  special,  of  any  such 
insurance  carrier  by  agent  or  attorney  shall  be  a  waiver  of  the  service 
of  copy  of  application  and  of  notice  of  hearing  required  by  section 
2394 — 16;  provided,  however,  that  payment  in  whole  or  in  part  of 
such  compensation  by  either  the  employer  or  the  insurance  company, 
shall,  to  the  extent  thereof,  be  a  bar  to  recovery  against  the  other  of 
the  amount  so  paid,  and  provided,  further,  that  as  between  the  em- 
ployer and  the  insurance  company,  payment  by  either  directly  to  the 
employe,  or  to  the  person  entitled  to  compensation,  shall  be  subject 
to  the  conditions  of  the  insurance  contract  between  them. 

(2)  The  failure  of  the  assured  to  do  or  refrain  from  doing  any  act 
required  by  the  policy  shall  not  be  available  to  the  insurance  carrier 
ae  a  defense  against  the  claim  of  the  injured  employe  or  his  depen- 
dents. 

(Section  2394 — 27)  (1)  Every  contract  for  the  insurance  of  the  com- 
pensation herein  provided  for,  or  against  liability  therefor,  shall  be 
deemed  to  be  made  subject  to  the  provisions  of  sections  2394 — 3  to 
2394 — 31,  inclusive,  and  provisions  thereof  inconsistent  with  sections 
2394—3  to  2394—31,  inclusive,  shall  be  void.  Such  contract  shall  be 
construed  to  grant  full  coverage  of  all  liability  of  the  assured  under  and 
according  to  the  provisions  of  sections  2394 — 3  to  2394 — 31,  inclusive, 
notivithstanding  any  agreement  of  the  parties  to  the  contrary  unless 
the  industrial  commission  has  theretofore  by  written  order  specifically 
consented  to  the  issuance  of  a  contract  of  insurance  on  a  part  of  such 
liability.  No  company  shall  enter  into  any  such  contract  of  insurance 
unless  such  company  shall  have  been  approved  by  the  commissioner 
of  insurance,  as  provided  by  law.  For  the  purposes  of  sections  2394 — 3 
to  2394 — 31,  inclusive,  each  employe  shall  constitute  a  separate  risk 
within  the  meaning  of  section  1898d  of  the  statutes;  provided,  that  at 
least  five  employers  shall  join  in  the  organization  of  a  mutual  company 
under  subdivision  (5)  of  section  1897  and  no  such  company  organized 
by  employers  shall  be  licensed  or  authorized  to  effect  such  insurance 
unless  such  company  shall  have  in  force  or  put  in  force  simultaneously, 
insurance  on  at  least  one  thousand  five  hundred  separate  risks. 

(2)  The  industrial  commission,  by  itself  or  its  employes,  may 
examine  from  time  to  time  the  books  and  records  of  any  liability  in- 
surance company  insuring  liability  or  compensation  for  ah  employer  in 
this  state.  Any  such  company  that  shall  refuse  or  fail  to  allow  the 
industrial  commission  to  examine  its  books  and  records  or  to  file  the 


2609a  220  Ch.  118 

report  required  by  subsection  3  of  section  2394 — 27,  Bhall  have  its 
license  to  do  business  in  the  state  revoked. 

(3)  Every  company  transacting  the  business  of  compensation  insur- 
ance, in  addition  to  all  other  reports  required  by  law  to  be  made,  shall, 
on  or  before  the  first  day  of  March  in  each  year,  on  blanks  furnished 
for  such  purpose,  make  and  file  with  the  industrial  commission  an  an- 
nual statement  of  its  business  and  accident  experience  covering  the 
year  ending  on  the  preceding  thirty-first  day  of  December. 

Section  2.  A  new  subsection  is  added  to  section  2394 — 24  of  the 
statutes  to  read:  (Section  2394 — 24)  (4)  If  it  appears  by  the  com- 
plaint or  by  the  affidavit  of  any  person  in  behalf  of  the  state  that  the 
employer's  liability  continues  uninsured  there  shall  forthwith  be 
served  on  the  employer  an  order  to  show  cause  why  he  should  not  be 
restrained  from  employing  any  person  in  his  business  pending  the 
proceedings  or  until  he  shall  have  satisfied  the  court  in  which  the  mat- 
ter is  pending  that  he  has  complied  with  the  provisions  of  subsection 
2  of  this  section.  Such  order  to  show  cause  shall  be  returnable  before  the 
court  or  the  judge  thereof  at  a  time  to  be  fixed  in  the  order  not  less 
than  twenty-four  hours  nor  more  than  three  days  after  its  issuance. 
In  so  far  as  the  same  may  be  applicable  and  not  herein  otherwise 
provided,  the  provisions  of  chapter  126  relative  to  injunctions  shall 
govern  these  proceedings.  If  the  employer  denies  under  oath  that  he  is 
subject  to  the  provisions  of  sections  2394 — 3  to  2394 — 31,  inclusive,  and 
furnishes  bond  with  such  sureties  as  the  court  may  require  to  protect 
all  his  employes  injured  after  the  commencement  of  the  action  for  such 
compensation  claims  as  they  may  establish,  then  an  injunction  shall 
not  issue.  Every  judgment  or  forfeiture  against  an  employer,  under 
subsection  3  of  this  section,  shall  perpetually  enjoin  him  from  employ- 
ing any  person  in  his  business  at  any  time  when  he  is  not  complying 
with  subsection  2  of  this  section. 


CHAPTER    118— ACTIONS    AGAINST    INSURANCE    COMPANIES 

Defendants  in  action  on  insurance  policies. 
Section  2609a.  In  actions  upon  a  policy  or  policies  insuring  property 
against  loss  or  damage  by  fire,  lightning,  hail,  cyclone  or  other  casualty 
the  plaintiff  may  join  as  parties  defendant  any  or  all  the  insurance 
companies  liable  for  the  loss  or  any  part  thereof,  and  all  the  issues 
shall  be  tried  at  the  same  time  and  by  the  same  jury  or  by  the  court, 
if  the  action  is  triable  thereby,  and  the  verdict  or  finding  shall  fix  the 
amount  for  which  each  defendant  is  liable;  or  the  court  may,  in  its 
discretion,  direct  the  jury  to  return  successive  verdicts,  or  make 
separate  findings,  so  that  all  issues  may  be  determined  at  the  same 
trial.  If  the  trial  is  by  a  jury  the  court  may  instruct  the  jury  upon 
one  or  more  of  the  issues,  and,  after  verdict  thereon,  instruct  upon 
other  issues  until  they  are  all  disposed  of.  If  the  issues  are  found  in 
favor  of  the  plaintiff  and  he  is  entitled  to  judgment  on  the  verdict  or 
findings  a  separate  judgment  shall  be  rendered  against  each  defendant 


Ch.  120  221  2637 

for  the  sum  for  which  it  is  found  to  be  liable,  together  with  the  propor- 
tion of  the  costs  for  which  it  is  liable,  which  proportion  shall  bear  the 
same  ratio  to  the  whole  amount  of  the  costs  as  the  amount  of  its 
liability  bears  to  the  total  sum  recovered  by  the  plaintiff  from  all  the 
defendants,  and  in  addition  to  such  costs  its  proportion  of  the  neces- 
sary disbursements  made  by  the  plaintiff,  calculated  on  the  same  basis. 


CHAPTER    119— THE    PLACE    OF   TRIAL    OF   CIVIL   ACTIONS 

Place  where  subject  of  action  situated. 

Section  2619.  The  proper  place  of  trial  of  civil  actions  is  as  follows, 
respectively : 

Fifth.  Of  an  action  against  an  insurance  company,  existing  under 
the  laws  of  this  state  to  recover  on  a  policy  of  insurance  the 
county  in  which  the  defendant  has  its  principal  office,  or,  at  the 
election  of  the  plaintiff,  if  a  resident  of  this  state,  the  county  in  which 
the  plaintiff  resides  or  if  the  action  is  brought  by  a  person  in  a  rep- 
resentative capacity  by  appointment  of  a  court  of  this  state,  the  county 
in  which  the  proceedings  resulting  in  such  appointment  was  had. 


CHAPTER  120— MANNER  OF  COMMENCING  CIVIL  ACTIONS 

Service  on  insurance  corporations. 

Section  2637.  Actions  against  corporations  shall  be  commenced  in 
the  same  manner  as  personal  actions  against  natural  persons.  The 
summons  and  the  accompanying  complaint  or  notice  aforesaid  shall 
be  served,  and  such  service  held  of  the  same  effect  as  personal  service 
on  a  natural  person,  by  delivering  a  copy  thereof  as  follows: 

(9)  If  against  any  insurance  corporation  not  organized  under  the 
laws  of  this  state,  to  the  agent  or  attorney  thereof  having  author- 
ity therefor  by  appointment  under  the  provisions  of  section  1915, 
or  to  any  agent  of  either  such  corporation  who  shall  solicit  insurance 
on  its  behalf  or  on  behalf  of  any  property  owner  or  person  desiring 
insurance,  or  who  transmits  an  application  for  or  a  policy  of  insurance 
to  or  from  any  such  corporation,  makes  any  contract  for  insurance, 
collects  or  receives  any  premium  therefor,  or  adjusts,  settles  or  pays 
a  loss  for  such  corporation  or  aids  or  assists  in  doing  either  or  in 
transacting  any  business  for  the  same,  or  on  any  person  who  adver- 
tises to  do  any  such  thing. 

(10)  If  against  any  other  corporation  organized  under  the  laws  of 
this  state,  to  the  president,  or  other  such  chief  officer,  vice  president, 
secretary,  cashier,  treasurer,  director,  or  managing  agent. 

Provided,  however,  that  whenever  any  such  corporation  does  not 
have  any  officer  or  agent  within  this  state  upon  whom  legal  service 
of  process  can  be  made,  of  which  the  return  of  the  sheriff  shall  be 
prima  facie  evidence,  service  of  the  summons  and  accompanying 
complaint  may  be  made  by  depositing  duplicate  copies  thereof  in  the 


3218  222  Ch.  140 

office  of  the  secretary  of  state,  one  of  which  copies  shall  be  filed  in  the 
office  of  said  secretary  of  state,  and  the  other  by  him  immediately 
mailed,  postage  prepaid,  addressed  to  said  company  at  its  office  desig- 
nated in  its  articles  of  incorporation  on  file  in  the  office  of  the  said  sec- 
retary of  state,  and  such  service  shall  be  deemed  and  treated  as  per- 
sonal service  on  such  corporation. 

11.  If  against  any  corporation  or  association  having  an  aid  or  benefit 
department  under  its  control  or  in  connection  therewith,  not  organized 
under  the  laws  of  this  state  and  doing  business  herein,  either  as  such 
corporation  or  association  or  by  means  or  in  the  form  of  a  local  or 
subordinate  aid  or  benefit  association,  or  of  subordinate  branches, 
lodges  or  divisions,  and  which  has  failed  to  appoint  an  agent  or  attorney 
in  compliance  with  paragraph  (b)  of  subsection  (2)  of  section  1915,  to 
any  officer  of  any  such  local  or  subordinate  aid  or  benefit  association, 
branch,  lodge  or  division. 


CHAPTER  130— PROPERTY  EXEMPT  FROM  EXECUTION 

Enumeration  of  personalty. 
Sectiox  2982.  (19)  All  moneys  arising  on  any  policy  of  insurance 
on  the  life  of  a  minor,  payable  to  his  father  or  mother,  or  both,  shall 
be  exempt  against  the  creditors  of  such  father  or  mother,  but  not 
against  the  creditors  of  such  minor;  all  moneys  arising  under  any 
policy  of  insurance  payable  to  a  married  woman  or  to  any  person  in 
trust  for  her  or  her  benefit  shall  be  exempt  from  the  claims  of  her 
husband  and  of  the  person  effecting  or  assigning  such  insurance  for 
her  benefit  and  from  the  claims  of  their  respective  representatives  and 
creditors,  subject  to  the  provisions  of  section  2'347;  and  all  moneys  or 
other  benefit,  charity,  relief  or  aid  to  be  paid,  provided  or  rendered  by 
any  mutual  beneficiary  or  fraternal  corporation,  society,  order  or  asso- 
ciation providing  insurance  on  the  assessment  plan  and  authorized  to 
do  business  in  this  state,  shall  be  exempt  against  the  creditors  of  a 
member  thereof  or  of  his  beneficiary  or  beneficiaries  to  the  amount  of 
five  thousand  dollars  in  all  cases  where  the  insured  pays  the  premiums 
or  assessments  or  any  part  thereof;  but  if  some  other  person  pays 
such  premiums  or  assessments  the  insurance  shall  be  absolutely 
exempt. 


CHAPTER  140— PROCEEDINGS  AGAINST   INSOLVENT  CORPO- 
RATIONS 

Injunction. 
Section  3218.  Whenever  any  corporation  having  banking  powers, 
cr  having  the  power  to  make  loans  or  pledges  or  deposits,  or  author- 
ized by  law  fo  make  insurance  shall  become  ins'olvent  or  unable  to  pay 
its  debts  or  shall  neglect  or  refuse  to  pay  its  notes  or  evidences  of 
debts  on  demand  or  shall  have  violated  any  of  the  provisions  of  its 
act  of  incorporation  or  of  any  other  law  binding  on  such  corporation. 


Ch.  142  223  3300 

any  court  having  jurisdiction  may,  by  injunction,  restrain  such  cor- 
poration and  its  officers  from  exercising  any  of  its  corporate  rights, 
privileges  or  franchises,  and  from  collecting  or  receiving  any  debts  or 
demands,  and  from  paying  out  or  in  any  way  transferring  or  delivering 
to  any  person  any  of  the  moneys,  property  or  effects  of  such  corpora- 
tion until  such  court  shall  otherwise  order. 

In  what  courts;  receiver. 

Section  3219.  Such  injunction  may  be  issued  by  the  supreme  court, 
upon  application  by  the  attorney-general,  or  private  party  in  the  name 
of  the  state  for  leave  to  commence  an  action  for  the  purpose  of  vacat- 
ing the  charter  or  annulling  the  existence  of  any  such  corporation  or 
upon  the  commencement  of  such  an  action  for  the  purpose  of  closing 
up  the  business  of  such  corporation  by  the  attorney-general  in  the 
name  of  the  state  or  by  any  creditor  or  stockholder  of  such  corporation, 
or  at  any  time  thereafter  upon  proof  of  the  facts  required  to  authorize 
the  issuing  of  the  same.  The  court  may  in  any  stage  of  such  action 
appoint  one  or  more  receivers  to  take  charge  of  the  property  and 
effects  of  such  corporation  and  to  collect,  sue  for  and  recover  the  debts 
and  demands  that  may  be  due,  and  the  property  that  may  belong  to 
such  corporation,  who  shall  in  all  respects  possess  the  powers  and 
authority  conferred  and  be  subject  to  all  the  obligations  imposed  upon 
receivers  in  other  cases,  and  in  all  respects  be  subject  to  the  control 
of  the  court. 

Proceedings  against  insurance  company;  notice  to  commissioner. 
Section  3219m.  The  same  notice  shall  be  given  to  the  commis- 
sioner of  insurance  in  all  actions  or  proceedings  against  an  insurance 
company  or  fraternal  benefit  society  for  an  injunction  or  receiver  as 
shall  be  required  to  be  given  to  the  defendant  or  defendants;  provided, 
that  the  depositing  of  a  copy  of  such  notice  in  the  mails,  sealed  and 
postpaid,  addressed  to  the  commissioner  of  insurance  at  Madison,  Wis- 
consin, shall  be  sufficient  service  of  such  notice. 


CHAPTER  142— COLLECTION   OF   FORFEITURES 

Forfeiture,  action  to  recover;  complaint;  Judgment. 
Section  3299.  When  a  forfeiture  is  imposed,  not  exceeding  a  specific 
sum  or  when  it  is  not  less  than  one  sum  or  more  than  another,  the 
action  may  be  brought  for  the  highest  sum  specified;  and  judgment 
may  be  rendered  for  such  sum  as  the  court  or  jury  shall  assess  or  de- 
termine to  be  proportionate  to  the  offense. 

Forfeiture;   action  by  district  attorney  or  attorney-general;   where 
paid. 

Section  3300.  All  forfeitures  imposed  by  chapter  89  may  be  sued 
for  by  the  district  attorney  of  the  county  in  which  the  insurance  com- 
pany or  any  of  its  agents  mentioned  in  said  chapter  may  be  located 


3871m  224  Ch.  160 

or  reside,  or  by  the  attorney-general.  If  the  action  be  brought  by  the 
district  attorney  one-half  of  the  forfeiture,  when  recovered,  shall  be 
paid  into  the  county  treasury  of  his  county  and  the  other  half  to  the 
Informer  of  such  violation  who  sues  jointly  with  the  state  therefor, 
and  otherwise  the  whole  shall  be  paid  into  such  county  treasury.  If 
the  action  is  brought  by  the  attorney-general  the  sum  recovered  shall 
be  paid  into  the  state  treasury. 


CHAPTER    161— SECURITY   FOR  COSTS 

Fidelity  bond  in  justice  court;  form;   certificate  to  accompany. 

Section  3783a.  Whenever  in  any  action  or  proceeding  in  the  court 
of  a  justice  of  the  peace  any  bond,  undertaking  or  recognizance  is 
permitted  or  required  by  law  or  by  order  of  the  court,  the  same  may 
be  executed  by  any  surety  company  authorized  to  do  business  in  this 
state,  using  the  usual  forms  for  that  purpose;  and  whenever  security 
is  required  to  be  entered  in  the  docket  as  provided  by  section  3741  or 
section  3783,  any  such  company  may  furnish  such  security  by  filing  an 
undertaking  in  substantially  the  following  form: 

Whereas  an  action  has  been  commenced  (or  is  about  to  be  com- 
menced) in  a  justice  court  in  the  county  of 

in  which  action  is  plaintiff 

and  is  defendant.     Now, 

therefore,  the company,  a  surety  company 

duly  authorized  by  law  to  do  business  in  the  state  of  Wisconsin,  un- 
dertakes and  agrees  to  become  surety  for  costs  (or  for  costs  and 
damages),  in  this  action,  in  a  sum  not  to  exceed  one  hundred  dol- 
U'rs  (or,  agrees  to  pay  all  costs  and  damages  which  shall  be  ad- 
Judged  against in  this  action,  as  the  case  may 

require). 

Dated ,  19 Company 

By 

The  undertaking,  when  filed,  shall  be  accompanied  with  the  certifi- 
cate of  the  commissioner  of  insurance,  or  a  copy  thereof  duly  certi- 
fied by  him,  mentioned  in  section  1966 — 34  of  the  statutes.  The  cost 
of  such  bond,  not  to  exceed  five  dollars,  shall  be  taxed  as  a  disburse- 
ment in  the  action. 


CHAPTER    166— ASSIGNMENT   OF    DOWER 

Future   estates;    mortality  tables;    rate   of   interest;    Judge   to   have 
computations  made  by  commissioner  of  insurance. 

Section  3871m.  The  present  value  of  any  estate,  annuity  or  in- 
terest of  beneficiary  may  be  computed  on  the  basis  of  the  American 
Experience  Table  of  Mortality  with  Craig's  Extension  below  age  ten. 
and  interest  at  five  per  cent  per  annum.  The  Northampton  Table  of 
Mortality  and  interest  at  the  aforesaid  rate  may  be  used  where  it  is 


Ch.  166 


225 


3871m 


impracticable  to  use  the  aforesaid  basis.  Any  court  or  judge  by  whoiu 
any  such  present  value  is  to  be  determined  may  transmit  to  the  com- 
missioner of  insurance  such  statement  of  the  facts  as  he  may  require, 
and  said  commissioner  shall  thereupon  make  the  necessary  computa- 
tion and  certify  same  without  charge.  The  present  value  of  an  im- 
mediate annuity  of  one  dollar,  on  the  above  basis  for  a  single  life  i  5  as 
follows: 

AMERICAN  EXPERIENCE  5%  SINGLE  LIFE 


Afire 

Present  "Value 

Age 

Present  Value     , 

Age 

Present  Value 

\0 

$12,818 

32 

$14,857 

64 

$7.7590 

1 

U,92Z 

33 

14.735 

65 

7.4588 

2 

].->,7.!l 

34 

14.608 

66 

7.1592 

S 

16,125           ; 

35 

14.475 

67 

6.8607 

(.am 

IG.SiS 

36 

14.336 

68 

6.5642 

5 

16.  m 

37 

14.191 

69 

6.2705 

6 

16.535            I 

38 

14.039 

70 

5. 9802 

7 

16.561 

39 

13.881 

71 

5.6942 

8 

16.560 

40 

13.716 

72 

5.4129 

9 

16.540 

41 

13.544 

73 

5.1359 

10 

16.505 

42 

■"3.365 

74 

4.8628 

11 

16.461 

43 

13.179 

75 

4.5926 

12 

16.415 

44 

12.985 

76 

4.3248 

13 

16.366 

45 

12.783 

77 

4.0586 

14 

16.316 

46 

12.574 

78 

3.7939 

15 

16.263 

47 

12.357 

79 

3.5311 

16 

16.207 

48 

12.133 

80 

3.2702 

17 

16.149 

49 

11.901 

81 

3.0135 

18 

16.088 

50 

11.662 

82 

2.7606 

19 

16.024 

51 

11.416 

83 

2.5105 

20 

15.957 

52 

11.164 

84 

2.2607 

21 

15.886 

53 

10.905 

85 

2.0098 

22 

15.813 

54 

10.610 

86 

1.7606 

23 

15.736 

55 

10.370 

87 

1.5175 

24 

15.655 

56 

10.095 

88 

1.2861 

25 

15.570 

57 

9.8145 

89 

1.0670 

26 

15.482 

58 

9.5299 

90 

0.85453 

27 

15.389 

59 

9.2413 

91 

0.64497 

28 

15.292 

60 

8.9493 

1        92 

0.44851 

29 

15.191 

61 

8. 6545 

93 

0.28761 

30 

15.084 

62 

8.3574 

94 

0.13605 

31 

14.973 

63 

8.0588 

The  foregoing  table  gives  the  present  value  of  an  annuity  of  one  dollar  for 
a  single  life,  not  an  immediate  annuity,  but  with  the  first  payment  at  the 
end  of  the  first  year  after  the  contract  tal^es  effect. 

(a)  The  values  for  ages  0  to  9  inclusive  had  not  been  computed  when  the 
table  was  first  adopted  as  a  part  of  the  statute.  They  are  included  in  the 
preseijt  table  for  convenience. 


It  is  not  necessary,  to  send  all  such  matters  to  the  insurance  department 
for  computation,  if  the  courts,  attorneys  or  administrators  are  capable  of 
doing  the  work.  A  large  percentage  of  the  cases  are  comparatively  simple 
and  these  can  be  computed  by  using  the  accompanying  annuity  table  which 
shows  the  present  value  of  an  annuity  of  one  dollar  per  year  for  life,  when 
only  one  life  is  involved. 

In  all  cases  of  joint  life  annuities,  temporary  annuities,  deferred  annuities, 
specific  sums  payable  to  beneficiaries  on  arriving  at  a  certain  age,  etc.,  etc., 
a  statement  of  facts  should  be  submitted  to  the  insurance  department,  be- 
cause such  cases  cannot  be  correctly  computed  by  the  use  of  this  table.  Such 
cases  are  comparatively  rare,  however,  and  it  is  believed  that  the  accom- 
panying table  will  enable  the  courts  to  take  care  of  a  majority  of  the  cases 
without  sending  them  to  the  insurance  department. 
15 


3871m  22(5  Ch.  166 

RULE  FOR  MAKING  COMPUTATIOXS   OF  SINGLE   LIFE  ESTATES 

Find  the  interest  at  five  per  cent,  for  one  year  upon  the  sum,  to  the  in- 
come of  which  the  person  is  entitled ;  then  multiply  this  interest  by  the  pres- 
ent value  of  one  dollar  per  year  for  life  as  given  opposite  the  person's  age 
in  the  table.  The  product  is  the  present  value  of  the  interest  of  such  person 
in  said  sum. 

Example.  Suppose  a  widow's  age  is  thirty-seven,  and  she  is  entitled  to 
a  life  interest  in  real  estate  worth  $3,000.  Five  per  cent,  interest  on  this 
amount  is  $150.  The  present  value  of  one  dollar  per  year  for  life  at  age  37 
is  $14,191.  Therefore  the  present  value  of  $150  per  year  would  be  150  times 
$14.91  or  $2,128.65. 

If  the  widow  is  entitled  to  a  dower  interest  only,  then  one-third  of  the 
value  is  taken,  and  computation  made  in  the  same  way. 

To  FIND  THE  PRESENT  VALUE  OF  A  REMAINDER,  dcduct  the  present  value  of 
the  annuity  as  determined  above  from  the  net  value  of  the  estate.  Thus,  if 
the  value  of  the  estate  is  $3,000  and  the  present  value  of  the  annuity  is 
$2,128.65  the  remainder  would  be  worth  $871.35. 

CAUTION 

It  is  a  common  error  to  assume  that  life  annuities  are  computed  on  the 
basis  of  the  so-called  "expectancy  of  life,"  or  "life  expectancy."  The  true  or 
correct  basis  for  such  computations  is  the  probability  of  living  or  dying 
from  year  to  year,  which  is  an  entirely  different  function. 

The  expectancy  of  life  was  used  by  the  Praetorian  Prefect  Ulpian  in 
Rome  in  364  A.  D.,  and  for  over  thirteen  centuries  this  was  the  only  method 
known  to  the  world.  In  1671,  however,  John  DeWitt,  the  Grand  Pensioner 
of  Holland,  discovered  that  the  theory  of  probabilities  developed  by  such 
men  as  Pascal,  Fermat,  Huyghens,  and  others,  could  be  applied  to  life  con- 
tingencies and  that  this  method  would  give  more  correct  results  than  those 
deduced  from  the  expectancy  of  life.  John  DeWitt,  however,  was  ahead  of 
his  time,  and  his  work  was  practically  lost  for  many  years.  At  any  rate' 
little  or  no  practical  use  was  made  of  his  tables. 

In  1691,  20  years  after  DeWitt's  discovery,  Dr.  Edmund  Halley  of  Eng- 
land, made  the  same  discovery,  and  for  a  long  time  thereafter  it  was  sup- 
posed that  he  was  the  original  discoverer  of  the  correct  method  of  computing 
life  annuities. 

It  is  true  that  the  expectancy  of  life  gives  a  rough  approximation  to  the 
correct  value  when  applied  to  whole  life  annuities,  but  why  use  approxima- 
tions when  a  correct  method  can  be  used  with  equal  or  even  greater  facility? 
It  should  be  noted  also  that  it  is  absolutely  impossible  to  compute  temporary 
annuities  on  the  basis  of  the  expectancy  of  life  and  these  are  much  more 
important  from  the  practical  standpoint  than  the  whole  life  annuities.  E'er 
example,  the  premiums  paid  by  policyholders  in  life  insurance  companies 
are  simple  annuities  and  the  policies  where  premiums  are  payable,  for  a 
fixed  period — "limited  payment"  are  far  more  numerous  than  the  policies 
which  require  payment  of  the  premiums  throughout  life.  Other  cases  of 
temporary  annuities  are  found  where  children  are  to  receive  an  income  until 
they  arrive  at  a  certain  age.  In  such  cases  the  "expectancy  of  life"  does  not 
even  give  a  rough  approximation  to  the  correct  result. 

Another  class  of  annuities  often  met  with  in  inheritance  fax  computations 
are  the  joint  life  and  survivorship  annuities.  No  one  has  ever  attempted  to 
give  a  rule  for  computing  such  annuities  on  the  basis  of  the  "expectancy  of 
life." 

One  reason  why  a  computation  on  the  basis  of  the  "expectancy  of  life" 
does  not  give  correct  results  even  for  whole  life  annuities,  is  that  it  does  not 
take  correct  account  of  the  compound  interest.  The  assumption  that  the 
compound  interest  on  a  series  of  payments  can  be  correctly  computed  by 
taking  an  average  period  of  time,  Is  fundamentally  wrong,  and  it  follows 
that  if  the  premises  are  wrong  the  conclusions  must  also  be  wrong. 


Ch.  176 


227  -^^52 


To  illustrate;  suppose  a  series  of  three  payments  of  one  hundred  dollars 
each  are  to  be  made  at  the  end  of  10,  20,  and  30  years  respectively.  Now 
one  payment  is  deferred  for  10  years,  one  for  20  years,  and  one  for  30  years, 
making  in  a  certain  sense  the  equivalent  of  60  years  for  $100  or  an  average 
of  2  years  for  $300.  The  present  value  of  $300  deferred  for  20  years  assum- 
ing interest  at  5%  is  $113.07.  Likewise  $100  deferred  for  60  years  has  a 
present  value  of  $5.35.  Neither  of  these  results  represents  the  true  present 
value  of  three  payments  of  one  hundred  dollars  each  payable  to  the  end  of 
10,  20  and  30  years.  To  get  a  correct  result  it  is  necessary  to  add  the  pres- 
ent value  of  all  the  payments  taken  separately  for  their  respective  periods, 

thus : 

Present  value  of  $100  payable  in  10  years $  61.39 

Present  value  of  $100  payable  in  20  years 37.69 

Present  value  of  $100  payable  in  30  years ^i-i-'j 

Total  present  value  of  all  payments $  122.22 

In  the  construction  of  life  annuity  tables  each  payment  must  be  discounted 
as  shown  in  the  above  example  to  allow  for  compound  interest  and  then  dis- 
counted again  to  make  allowance  for  the  probability  or  chance  of  dying  from 
year  to  year  within  the  period  covered  by  the  annuity.  This  method  is  ac- 
cepted by  actuaries  all  over  the  world  as  mathematically  correct.  There  is 
absolutely  no  dispute  among  authorities  on  this  point.  We  now  have  annuity 
tables,  and  commutation  tables  based  on  various  tables  of  mortality  and 
various  rates  of  interest,  and  durations,  all  computed  according  to  a  consist- 
ent scientific  method  that  will  apply  to  all  forms  of  annuities,  and  as  stated 
above,  is  recognized  by  authorities  throughout  the  civilized  world. 

It  follows  therefore,  that  there  is  no  necessity  for  using  the  "expectancy 
of  life"  in  such  computations,  even  in  case  of  whole  life  annuities  in  which 
it  is  at  best  only  an  approximation. 

Section  3871m  of  the  statutes  makes  it  the  duty  of  the  Insurance  De- 
partment to  make  computations  of  such  values  when  a  statement  of  facts  is 
submitted  by  any  court  in  the  state  having  jurisdiction  of  the  case.  As  a 
matter  of  practice  the  department  has  always  made  such  computations  for 
public  administrators  and  attorneys  who  have  made  request  for  them. 

For  those  who  desire  to  look  into  the  matter  and  wish  to  learn  more  fully 
the  correct  method,  attention  is  called  to  the  following  authorities  : 

Inheritance  Tax  Computations  by  S.  H.  Wolfe,  page  7  ; 

Principles  and  Practice  of  Life  Insurance,  page  15; 

Practical  Lessons  in  Actuarial  Science  by  Miles  M.  Dawson,   page  172; 

Institute  of  Actuaries  Text  Book,  Chap.  VII ; 

Actuarial  Science  by  Ninian  Glenn,  page  69  ; 

Life  Insurance  Premiums  by  Abb  Landis,  page  36  ; 

Notes  on  Life  Insurance  by  E.  B.  Fackler,  page  159  ; 

Notes  on  Life  Insurance  by  Gustavus  Smith  ; 

Present  Value  Tables  by  Giauque  and  McClure,  page  4. 


CHAPTER   176— EVIDENCE 

Certificate  of  assessment. 
Section  4182.  Whenever  an  assessment  is  made  on  any  premium 
note  given  to  any  mutual  insurance  company  for  any  liazard  talten  by 
said  company  or  as  a  consideration  for  any  policy  issued  or  to  be  issued 
by  said  company,  or  whenever  any  assessment  is  made  by  the  directors 
or  other  proper  officers  of  any  such  company  for  money  due  it  from  any 
member  thereof,  and  action  is  brought  to  recover  such  assessment,  the 
certificate  of  the  secretary  of  said  company,  specifying  such  assess- 
ment, the  amount  due  said  company  by  means  thereof  and  that  notice 


4202t  228  Ch.  176 

thereof  was  given  the  person  liable  therefor  shall  be  received  as  pre- 
sumptive evidence  of  the  facts  so  certified. 

Verified  copies  of  book  entries. 
Section  4182a.  Whenever  any  evidence  shall  be  required  from  the 
books  of  any  life  or  mutual  benefit  insurance  corporation  or  association 
engaged  in  doing  business  on  the  level  premium  or  assessment  plan,  at 
the  time  of  the  trial  of  the  action  or  proceeding  in  which  such  evidence 
is  needed,  verified  copies  of  the  entries  in  such  books,  together  with 
statements  showing  the  number  of  members  insured  in  or  belonging 
to  such  corporation  or  association,  and  t'^e  number  of  members  in 
each  class  or  grade  thereof  and  the  aggregate  amount  which  would  be 
due  from  them  upon  a  single  assessment,  when  made  by  the  secretary 
or  other  officer  thereof  having  the  custody  of  such  books,  under  oath  or 
affidavit,  stating  that  such  copy  or  copies  are  true  and  are  taken  from 
the  regular  books  of  the  corporation  or  association  used  and  kept  for 
the  transaction  of  its  business,  and  that  such  books  are  now  in  his 
custody  or  under  his  control  shall  be  received  in  all  legal  proceedings 
as  prima  facie  evidence  of  such  entries  or  statements.  No  officer 
of  any  such  corporation  or  association  shall  be  compelled,  unless  by 
special  order  of  the  court  or  officer  before  whom  the  action  or  pro- 
ceeding in  which  such  evidence  is  required,  to  produce  any  books  o: 
records  thereof  before  the  same;  provided,  the  verified  entries  and 
statements  herein  required  shall  be  served  upon  the  attorney  of  the 
party  who  requires  them  at  least  six  days  before  the  term  of  court 
or  time  set  for  the  trial  or  hearing  of  such  action  or  proceeding,  and 
that  such  books  and  records  shall  be  subject  to  the  inspection  of  any 
interested  party  or  his  attorney  to  the  extent  pi-escribed  by  all  orders 
made  by  such  court  or  officer  on  proper  application  therefor.  Any 
person  who  shall  wilfully  and  corruptly  make  a  false  copy  of  any 
entry  or  statement  herein  provided  for  or  give  false  testimony  con- 
cerning the  same  shall  be  deemed  guilty  of  perjury. 

Inspection  of  books  and  writings;   order  for. 

Section  4183.  The  court  before  which  an  action  is  pending,  or  a 
judge  thereof,  may,  in  discretion  and  upon  due  notice,  order  either 
party  to  give  to  the  other,  within  a  specified  time,  an  inspection  and 
copy  or  permission  to  take  a  copy  of  any  books,  papers  and  docu- 
ments in  his  possession  or  under  his  control  containing  evidence  re- 
lating to  the  merits  of  the  action  or  of  the  defense  therein.  If  com- 
pliance with  the  order  be  refused  the  court,  on  motion,  may  exclude 
the  paper  from  being  given  in  evidence  or  punish  the  party  refusing, 
or  both. 

SixTioN  4202t.  If  the  age  of  the  insured  has  been  misstated  in  an 
application  for  a  policy  of  life  insurance,  and  the  error  shall  not  have 
been  adjusted  during  the  lifetime  of  the  insured,  the  amount  payable 
under  the  policy  shall  be  such  as  the  premium  paid  would  have  pur- 
chased at  the  correct  age,  except  that  if  the  correct  age  of  the  insured 


Ch.  182  229  U38em 

at  the  time  the  insurance  was  applied  for  shall  have  been  beyond  the 
maximum  age  limit  designated  by  the  insurer,  tlie  insurer  may,  at 
his  option,  admit  a  minimum  liability  equal  to  the  amount  of  pre- 
miums collected  under  the  policy.  The  provisions  of  this  section  shall 
apply  to  fraternal  or  mutual  benefit  societies. 


CHAPTER   182— PENAL   PROVISIONS 

Fraud  on  fire  company. 
Section  4405.  Any  person  who  shall  wilfully  burn  any  building  or 
any  goods,  wares,  merchandise  or  other  chattels,  which  shall  be  at 
the  time  insured  against  loss  or  damage  by  fire,  with  intent  to  injure 
the  insurer,  whether  such  person  be  the  owner  of  the  property  or 
not,  shall  be  punished  by  imprisonment  in  the  state  prison  not  more 
than  ten  years  nor  less  than  three  years. 

Fraud  on  life  company;  absconding  insured. 
Section  4438e.  Any  person  who  shall  effect  a  policy  or  certificate 
of  insurance  or  procure  either  to  be  effected  on  his  life,  with  the  in- 
tent of  absconding  or  concealing  himself  for  the  purpose  of  procuring 
for  himself  or  any  other  person  the  whole  or  any  part  of  the  money 
payable  pursuant  to  such  policy  or  certificate;  or  any  person  having 
a  policy  or  certificate  of  insurance  upon  his  life  who  shall  abscond  or 
conceal  himself  with  the  intent  to  procure  for  himself  or  any  other 
person  the  money  so  payable,  in  whole  or  in  part,  or  any  person  who 
shall  knowingly  aid,  assist  or  abet  another  whose  life  is  insured  in 
absconding  or  concealing  himself  for  the  purpose  of  procuring  for 
himself  or  any  other  person  any  insurance  moneys,  or  any  person 
who  shall  knowingly  aid,  assist  or  abet  the  assured  named  in  any  such 
policy  or  certificate,  who  has  absconded  or  concealed  himself  for  the 
purpose  of  obtaining  from  any  insurance  company  any  insurance 
moneys  for  himself  or  any  other  person;  or  any  person  who  shall 
knowingly  aid,  assist  or  abet  the  beneficiary  or  beneficiaries,  or  either 
or  any  of  them,  named  in  any  policy  or  certificate  of  insurance,  or  the 
next  of  kin,  or  any  person  having  an  insurable  interest  in  the  life  of 
any  assured  who  has  absconded  or  concealed  himself  for  the  pur- 
pose of  obtaining  any  insurance  moneys  for  himself  or  any  other 
person,  in  attempting  to  pronure  or  procuring  such  moneys  shall  be 
fined  not  less  than  five  hundred  dollars  nor  more  than  three  thousand 
dollars  or  imprisoned  in  the  state  prison  not  less  than  one  year  nor 
more  than  five  years. 

Penalty  for  false  statements. 

Section  4438em.  Any  solicitor,  agent,  policyholder,  physician,  or 
other  person  who  shall  knowingly  make  a  false  or  fraudulent  state- 
ment of  any  material  fact  or  thing  in  a  certificate  or  sworn  statement, 
as  to  the  death  or  disability  of  a  certificate  holder  or  policyholder  of 
any  company,   corporation,   association,   order  or   society,   transacting 


457  5e  230  Ch.  185 

the  business  of  insurance,  for  the  purpose  of  procuring  payment  of 
an  indemnity  or  benefit  named  in  the  certificate  or  policy  of  such 
holder,  shall  be  guilty  of  a  misdemeanor,  and  upon  conviction  shall  be 
punished  by  a  fine  of  not  less  than  one  hundred  dollars  nor  more  than 
one  thousand  dollars,  or  by  imprisonment  in  the  county  jail  for  not 
less  than  one  month  nor  more  than  one  year,  and  if  said  person  con 
victed  be  an  agent  or  physician,  his  license  to  solicit  or  practice  in 
this  state  may  be  revoked,  in  the  discretion  of  the  court. 

False  statements  prohibited;  penalty. 
Section  4438J.  Any  officer,  director,  attorney  in  fact,  manager,  or 
employe  of  any  insurance  corporation,  Lloyd's  association,  interinsurer, 
fraternal  or  mutual  benefit  society,  or  other  insurer,  who  shall  wil- 
fully and  knowingly  subscribe  to,  make,  or  cause  to  be  made,  any 
false  entry  in  the  books  thereof,  or  shall  knowingly  subscribe  to  or 
exhibit  false  papers,  with  the  intent  to  deceive  any  person  or  persons 
authorized  to  examine  into  its  affairs,  or  shall  knowingly  make,  state, 
or  publish  any  false  report  or  statement  of  any  such  insurance  cor- 
poration, Lloyd's  association,  interinsurer,  fraternal  or  mutual  bene- 
fit society,  or  other  insurer,  shall  be  punished  by  a  fine  of  not  less 
than  one  hundred  dollars  nor  more  than  five  thousand  dollars  or  by 
imprisonment  in  the  state  penitentiary  not  less  than  one  nor  more 
than  ten  years,  or  by  both  such  fine  and  imprisonment. 


CHAPTER   185— FRAUD 

State  officer  or  employe,  compensation  or  gift  for  service  relating 
to  duty,  penalty,  exception. 

Section  4549g.  Except  as  specifically  authorized  by  statute,  no  offi- 
cer or  employe  of  the  state  shall,  directly  or  indirectly,  receive  or 
accept  any  sum  of  money,  or  anything  of  value,  for  the  furnishing  of 
any  information,  or  performance  of  any  service  whatever  relating  in 
any  manner  to  the  duties  of  such  officer  or  employe.  Any  person 
violating  this  section  shall  be  punished  by  a  fine  of  not  less  than 
twenty-five  dollars  nor  more  than  one  thousand  dollars,  or  more  than 
six  months'  imprisonment  in  the  county  jail,  or  by  both  such  fine  and 
imprisonment. 

Mutual  benefit  society;  action  as  agent  after  license  revoked. 

Section  4575c.  Any  person  who  shall  act  or  aid  in  any  manner  in 
transacting,  in  this  state,  the  business  of  or  with  any  fraternal  or 
beneficiary  corporation,  society,  order  or  association  for  the  relief  of 
members  or  beneficiaries  and  furnishing  life  or  casualty  insurance 
upon  the  indemnity  plan,  in  placing  risks  or  effecting  insurance  there- 
in, collecting  duties  or  assessments  therefor,  or  in  any  other  manner, 
after  the  license  of  any  such  corporation,  society,  order  or  associa- 
tion has  been  revoked  and  while  it  is  without  authority  to  do  busi- 
ness in   this   state,  or  while   an   injunction   prohibiting   any   such   or- 


Ch.  185  231  4575s 

ganization  from  doing  business  in  this  state  is  in  force,  shall  he 
punished  by  a  fine  not  less  than  twenty-five  dollars  nor  more  than 
two  hundred  dollars  or  by  imprisonment  in  the  county  jail  not  less 
than  thirty  days  nor  more  than  one  year,  or  by  both  such  fine  and 
imprisonment. 

Section  4575c  is  referred  to  in  J,575e. 

Unauthorized  mutual  benefit  society,  acting  as  agent  for. 

Section  4575d.  Any  person  who  shall,  in  any  manner,  solicit,  ad- 
vise, aid  or  procure  or  aid  in  soliciting,  advising,  assisting  or  procur- 
ing any  person  to  become  a  member  of  any  assessment  plan,  corpora- 
tion, society,  order  or  association  conducted  for  mortuary,  endowment, 
sick,  accident  or  permanent  disability  benefit  or  any  other  kind  or 
plan  of  assessment  insurance,  which  corporation,  society,  order  or 
association  is  not  authorized  to  transact  business  in  this  state,  or 
who  shall  accept,  collect,  receive  or  be  instrumental  in  the  collection 
or  transmission  of  any  admission  fees,  assessments,  dues  or  payments 
of  any  kind  whatever  on  account  of  any  such  insurance  or  benefit  cer- 
tificate in  any  such  corporation,  society,  order  or  association  shall  be 
punished  by  a  fine  of  not  less  than  fifty  dollars  nor  more  than  three 
hundred  dollars,  or  by  imprisonment  in  the  county  jail  not  less  than 
sixty  days  nor  more  than  one  year,  or  by  both  such  fine  and  imprison- 
ment. 

Fraud  in  obtaining  membership. 
Section  4575e.  Any  person  who  shall  knowingly  or  wilfully  make 
any  false  or  fraudulent  statement  or  representation  in  or  with  refer- 
ence to  any  application  for  membership  or  in  or  with  reference  to  any 
documentary  or  other  proof  for  the  purpose  of  obtaining  membership 
in  or  benefit  from  any  such  corporation,  society,  order  or  association 
as  is  mentioned  in  section  4575c,  for  himself  or  any  other  person,  shall 
be  fined  in  a  sum  not  less  than  one  hundred  dollars  nor  more  than 
one  thousand  dollars,  or  be  imprisoned  in  the  county  jail  not  less  than 
three  months  nor  more  than  one  year,  or  both;  and  any  certificate  of 
membership  or  policy  so  secured  shall  be  absolutely  void. 

Unauthorized   insurer;   applications;    penalty  for  receiving  or  col- 
lecting premiums. 

Section  4575s.  Any  unauthorized  fire  insurance  company  or  other 
unauthorized  insurer  which  shall  hereafter  take  or  receive  any  appli- 
cation for  fire  insurance  on  property  in  this  state,  or  shall  receive  or 
collect  a  premium  on  any  part  thereof  for  such  insurance,  shall  be 
punished  by  a  fine  of  not  more  than  five  thousand  dollars.  Any  offi- 
cer, agent,  solicitor,  or  broker,  or  other  employe  of  any  unauthorized 
insurance  company  or  other  unauthorized  insurer  who  shall  take  or 
receive  any  application  for  fire  insurance  on  property  in  this  state,  or 
shall  receive  or  collect  a  premium  on  any  part  thereof  for  such  in- 
surance, shall  be  guilty  of  a  felony,  and  shall  be  punished  by  a  fine 
of  not  more  than  five  hundred  dollars,  or  imprisonment  in  the  state 
penitentiary  for  one  year,  or  by  both  such  fine  and  imprisonment. 


232 
TABLE  OF  CHAPTERS  OF  SESSION   LAWS  FROM  1899  TO  1919 

Giving  sections  of  the  statutes  created,  amended  or  repealed. 

The  sections  of  this  compilation  are  taken  from  the  statutes  of  1898, 
and  the  laws  of  1899,  1901,  1903,  1905,  1907,  1909,  1911,  1913,  1915, 
1917,  1919  and  1921.    All  chapters  are  arranged  numerically. 

Sections  from  the  statutes  of  1898  are  found  under  the  corresponding 
section  number. 

The  letter  "a"  preceding  the  section  number  indicates  that  the 
session  law  is  an  amendment;  the  letter  "n"  indicates  that  it  is  a 
new  section;  the  letter  "r"  indicates  that  the  section  was  repealed. 


Laws  of  1899 

Ch. 

22 

a 

1951 

Ch. 

27 

a 

1941-27 

Ch. 

32 

a 

1926 

Ch. 

101 

a 

1955c     See  1957  (5) 

Ch. 

166 

Sec. 

2 

n 

1908a 

Ch. 

168 

a 

1929 

Ch. 

169 

a 

1937 

Ch. 

190 

Sec. 

1 

n 

1919a  to  1919e 

Ch. 

192 

a 

1971 

Ch. 

316 

a 

1941-46 

Ch. 

326 

a 

1220 

Ch. 

344 

Sec. 

1 

n 

1919g 

Ch. 

351 

Sec. 

30 

a 

1966-36 

Laws  of  1901 

Ch. 

21 

a 

1220 

Ch. 

81 

a 

1928 

Ch. 

144 

Sec. 

2 

a 

1925 

Ch. 

202 

a 

1927 

Ch. 

232 

n 

1914a 

Ch. 

233 

a 

1972b 

Ch. 

249 

n 

1978f  to  1978m 

Laws  of  1903 

Ch. 

6 

a 

1951 

Ch. 

15 

n 

2347b 

Ch. 

56 

n 

1955a-l 

Ch. 

130 

n 

1966-49 

Ch. 

190 

a 

2637   (9)    (10)    (11) 

Ch. 

208 

a 

1220 

Ch. 

214 

a 

1947 

Ch. 

237 

a 

1954 

Ch. 

352 

a 

1931 

Ch. 

413 

n 

1966—49 

Ch. 

436 

a 

1966—38 

233 
Laws  of  1905 

Ch.  36  a  1931 

Ch.  38  a  1976 

Ch.  51  a  1945a 

Ch.  55  n  1941-22a  to  1941-22i  See  194  Ig 

Ch.  92  a  1972 

Ch.  102  a  1941-64 

Ch.  166  n  1919a 

Ch.  167  a  1974 

Ch.  170  n  1955-21  to  1955-26 

Ch.  180  a  1967 

Ch.  181  a  1920 

Ch.  205  a  1966-38 

Ch.  206  n  1914a 

Ch.  212  a  1972b 

Ch.  253  a  1951 

Ch.  325  a  1219 

Ch.  353  a  1977 

Ch.  425  a  1967 

Ch.  448  a  1952 

Ch.  451  a  1971 

Ch.  455  a  1220 

Ch.  503  a  1967a 

Ch.  501  n  1966-49 

Ch.  509  a  1772,  1773,  1774 

Ch.  519  a  1950 

Laws  of  1907 

Ch.  126  n  1946f 

Ch.  127  n  1953b 

Ch.  131  n  1953e 

Ch.  132  a  1948 

Ch.  146  n  19470 

Ch.  150  a  1949 

Ch.  228  n  1946g  to  1946q 

Ch.  342  a  1953d 

Ch.  389  n  1760m 

Ch.  391  n  1947p 

Ch.  432  a  1945e 

Ch.  439  a  1927 

Ch.  442  a  1931 

Ch.  447  n  1955y-l  and  1955y-2 

Ch.  457  a  1935 

Ch.  483  n  1955-5 

Ch.  501  a  1976 

Ch.  504  a  19550 

Ch.  525  a  1941-47  and  1941-64   . 


234 
Laws  of  1907 — continued 

Ch.  546  a  1955J 

Ch.  562  a  1772 

Ch.  584  n  1953n 

Ch.  597  a  1954 

Ch.  621  n  1947r 

Ch.  636  n  1952a  to  1952d 

Ch.  637  n  1946x 

Ch.  640  a  1947 

Ch.  656  a  1220 

Ch.   657  n  1950n  to  1950t 

Ch.  658  n  1952f  to  1952i 

Ch.  667  .   n  1947c  to  1947k 

Ch.  668  n  1950m 

Laws  of  1909 

Ch.  31  a  1927  (3),  1940 

Ch.  33  n  1955-23m,  a  1955-25 

Ch.  39  a  1947  (3) 

Ch.  58  a  1947g 

Ch.  63  n  1941n 

Ch.  99  a  1931  (2) 

Ch.  106  a  1945c 

Ch.  108  n  1948m 

Ch.  113  a  1978c 

Ch.  116  a  1976 

Ch.  120  a  1946X,  a  1950q,  a  1952d 

Ch.  130  n  1941a— 1  to  4 

Ch.  153  a  1931a 

Ch.  158  n  1955b-5 

Ch.  209  a  1950,  n  1950a,  1950b,  1950c 

Ch.  228  a  1947b,  j,  k,  n 

Ch.  259  n  1219m 

Ch.  267  a  1903 

Ch.  274  n  1941-9m 

Ch.  288  n  4202m 

Ch.  290  a  1219 

Ch.  296  a  1972 

Ch.  355  a  1772 

Ch.  390  a  1946n  (3) 

Ch.  449  n  1947o  (5) 

Ch.  460  n  1219e,  1896,  1897,  1897a,  1897b 
n  1897c,  1897d,  1897e,  1897g,  1897i 
n  1897s,  1897t,  1898,  1898d 
n  1901J.  1901m,  1901n,  1941g 
a  1908 


235 

Laws  of  1909 — continued 

r  1896,  1897,  1898,  1899,  1900,  1901,  1907,  1941a  to 
1941f,  1941-1,  1941-la,  1941-3,  1941-8,  1941-13, 
1941-14  to  1941-22,  1941-22a  to  1941-22i,  1941-23 
to  1941-32,  1941-33  to  1941-41,  1966-2  to  1966-12, 
1966-13  to  1966-31a,  1966-41,  1966-43,  1966-49, 
1966-50  to  1966-54,  1966-61  to  1966-71,  and  1966- 
81  to  1966-88 
Ch.  536        n  1950d 

Laws  of  1911 

Ch,   3  n  4549g 

Ch.  27  a  1976 

Ch.  32  Amends  and  renumbers  1955a  to  be  1958 

Ch.  57  a  1955-23 

Ch.  66  n  1908m 

Ch.  83  n  1970p 

Ch.  84  n  1960 

Ch.  87  n  1919m 

Ch.  152  n  1895m,  1970m,  1970n 

Ch.  154  n  1900 

Ch.  155  a  1931 

Ch.  156  a  1936 

Ch.  157  a  1902,  1903 

Ch,  158  n  1897k,  r  1942-1 

Ch.  165  a  1928 

Ch.  175  Amends  and  renumbers  1955a  to  1958 

Ch.  190  a  1966-34 

Ch.  208  n  1948f 

Ch.  210  n  1957  (5m) 

Ch.  216  n  1956  1957  (3,  10,  11),  1958  (15,  16,  17),  1959  (22. 
24,  25,  2-7,  28,  30),  renumbers  1955c  to  1957  (5), 
1955g  to  1959  (23),  19551  to  1959  (26),  1955k  to 
1959  (29),  r  1955b,  1955d,  1955e,  1955f,  1955h, 
1955J,  19551,  1955m,  1955n,  1978x 

Ch.  235  n  1899 

Ch.  247  a  1941-64 

Ch.  265  a  1955y-l 

Ch.  270  a  19550,  r  19431 

Ch.  275  a  1897,  1897a,  1897g 

Ch.  277  a  1915 

Ch.  280  n  1897f 

Ch.  287  n  1897f  (2m) 

Ch.  295  a  1953n,  1954 

Ch.  310  n  19550  (5m) 

Ch.  311  n  19550  (2,  d) 

Ch.  341  a  1773 

Ch.  436        a  1919a,  r  1945e 


236 

Laws  of  1911 — continued 

Ch.  484  n  1966y 

Ch.  502  a  1951 

Ch.  507  n  4202s 

Ch.  532  a  1760,  n  1774n 

Ch.  577  n  1989m 

Ch.  578  n  1926m 

Ch.  581  n  1968f 

Ch.  603  Amends  and  renumbers  1978e  to  1978h,  n  197Sf 

CTi.  609  a  170  (14) 

Ch.  648  a  1967a,  1968 

Ch.  663  Correction  acts,  amend  and  renumber  sundry 

Ch.  664         sections. 


Laws  of  1913 

Ch.  43  n  1927  (3d) 

a  1931  1  (b) 

Ch.  117  a  1938 

Ch.  127  a  1900 

Ch.  152  a  1931  (2) 

Ch.  154  n  1970O 

Ch.  167  n  1958  (2)  (e) 

Ch.  188  n  1748  (8) 

Ch.  196  a  1898  (1) 

Ch.  199  a  1773 

Ch,  208  n  1943a 

Ch.  209  n  3219m 

Ch.  210  n  1915  (1)  (c)  (2) 

n  1915m 

Ch.  242  n  1931  (2m)  (4) 

Ch.  251  n  1959  (22m) 

Ch.  277  n  1898  (3,  4) 

Ch.  282  n  1977a 

Ch.  291  a  1989m  (2,  12,  13,  14,  15) 

Ch.  316  n  1943m 

Ch.  366  n  1941-64m 

n  4575s 

Ch.  387  n  1973m 

Ch.  411  a  1222 

Ch.  442  n  1966-34  (3) 

Ch.  445  n  19550  (2i) 

Ch.  464  n  1941-63s 

Ch.  465  a  1926 

Ch.  489  n  1946i  (4,  5) 

Ch.  517  a  1946f 

Ch.  529  n  1941g  (1)  (o) 

Ch.  553  n  1903 


237 
Laws  of  1913 — continued 


Ch. 

596 

n  1950f 
n  3871m 

Ch. 

599 

a  2394-26  to  2394-28,  inc. 

Ch. 

601 

n  1960 

Ch. 

627 

a  1087-15  (4)  (5) 

Ch. 

637 

n  1905 

n  1915  (4,  5,  6,  7) 

n  1916 

a  1917 

Ch. 

638 

n  1219  (3) 
n  1958  (8) 

Ch. 

639 

n  1957  (11)  (d) 

Ch. 

662 

a  1908m 

Ch. 

675 

n  172-14 

Ch. 

691 

a  3783a 

Ch. 

714 

a  1978c  (2) 
a  1978d 

Ch. 

760 

a  1966-38 

Ch. 

772 

a  170 
a  1946k 
a  1946n 
a  1946q 
a  1967 
a  1967a 
a  1968 
a  1968f 
a  1971 
a  1972a 

Ch. 

773 

a  170 

Laws  of  1915 

Ch. 

28 

a  1935  (2) 

Ch. 

29 

n  1943m  (10) 

Ch. 

30 

n  1896m 

Ch. 

31 

a  1947r 

Ch. 

33 

a  1927  (3)  (0) 

Ch. 

48 

a  1879g  (4) 

Ch. 

69 

n  4438J 

Ch. 

70 

n  1927m 

Ch. 

73 

n  1897a  (2)  (e) 

Ch. 

81 

n  1951f 

Ch. 

86 

n  1946em 

Ch. 

98 

n  4438em 

Ch. 

104 

n  1966-34  (4) 

Ch. 

128 

a  1926  (4) 

Ch. 

132 

n  51.33  (1) 

238 

Laws  of  1915 — continued 

Ch.  132  a  51.31  (3)  and  renumbered  to  be  51.311 

Ch.  132  r  51.32  (3)  and  (5) 

Ch.  173  a  1897f  (2m) 

Ch.  255  a  1970o 

Ch.  256  n  1900f 

Ch.  265  n  1943f 

Ch.  265  r  1943 

Ch.  283  n  51.34,  (2,  3  and  4) 

Ch.  306  a  1946q,  (1) 

Ch.  311  n  1958  (2)   (f) 

Ch.  312  r  1946X   (6) 

Ch.  312  a  1946X  (9),  (11),  (12),  and  (16);  1948m,  (1);  1950m; 

1950n;    1952c,   (1  and  3);   1952d;    1952f;    1952g; 

19521;  1953n,  (1) 
Ch.  323  Amends  and  renumbers  1946f  (3)  to  be  1946f  (4) 

Ch.  323  n  1946f  (3) 

Ch.  331  a  1950s 

Ch.  434  a  51.32  (1) 

Ch.  444  n  1931   (5) 

Ch.  504  r  1946g,  1946n  (2  and  4) 

Ch.  504  a  1946h;    170-14;    1946n    (3);    1946J;    19461;    amends 

and  renumbers  172-39  to  be  172-14  (3) 
Ch.  603  a  1946n  (3  and  4)  51.31  (1) 

Ch.  604  r  1946k  (3) 

Ch.  604  a  1919m   (5);   1926m   (3);    1947   (5);   51.315,  51.32   (2) 

Ch.  604  r  1927   (3)    (d) 

Ch.  609  n  172-14   (4) 

Ch.  609  a  172-14  (2) 

Ch.  629  1946p 

Ch.  634  Amends     renumbers    and     combines     1946n     (3)     as 

amended  by  chapters  504  and  603,  1915  to  be 

1946n  (2) 


Laws  of  1917 

a  1971 

a  1968  (3),  (5) 

Amends  and  renumbers  172-38  to  be  20.06 

Amends  and  renumbers  1973m  to  be  20.06 

Amends  and  renumbers  1946n   (2)   to  be  20.55 

Amends  and  renumbers  170  (4),  172-14  to  be  20.55 

Amends  and  renumbers  172-71,  172-118  to  be  20.55 

Amends  and  renumbers  169a,  parts  of  170,  170m,  and 

171  to  be  20.73 
n  1917   (5) 
n  1976m 
r  1956  (7) 


Ch. 

12 

Ch. 

13 

Ch. 

Ch. 

Ch. 

Ch. 

Ch. 

Ch. 

Ch. 

19 

Ch. 

20 

Ch. 

55 

2:59 
Laws  of  1917— continued 

Ch.  55  a  1956  (5) 

Ch.  61  a  1943b 

Ch.  61  n  1946-1  to  1946-lS 

Ch.  66  a  1926m  (2),  (5) 

Ch.  66  r  1926m  (6) 

Ch.  67  n  4202m  (3) 

Ch.  67  a  4202s 

Ch.  79  a  1897g  (2) 

Ch.  106  a  1897a  (3),  1947a,  lS48m  (4),  1950d  1(3),  1960  (12) 

Ch.  106  n  1950  (Ig) 

Ch.  107  n  1976  (7) 

Ch.  127  r  1941-42  to  1941-60 

Ch.  127  n  1941X 

Cli.  127  Repeals  and  reenacts  1941-62 

Ch.  150  n  1959-22n,  corrected  by  ch.  566  to  be  1959   (22n) 

Ch.  160  n  1966-47a 

Ch.  194  a  1957  (5m) 

Ch.  199  a  1948f  (1),  1952d,  1959,  (23) 

Ch.  201  a  1928  (1) 

Ch.  211  a  177ob  (2),  1770J  (1) 

Ch.  213  a  1976  (1) 

Ch.  270  Repeals  and  reenacts  1951 

Ch.  365  n  1958  (18) 

Ch.  369  n  1958  (IS)  renumbered  by  ch.  671  to  be  1958  (19) 

Ch.  387  r  1915m  (3,  6  and  12) 

Ch.  387  a  1915m  (2  and  10) 

Ch.  387  n  1915m  (3,  6,  13,  14  and  15) 

Ch.  423  n  20.55  (6) 

Ch.  432  a  1957  (10) 

Ch.  444  a  1945c 

Ch.  460  a  1941X 

Ch.  461  r  1943f 

Cli.  461  n  1943 

Ch.  482  a  1978b,  1978d 

Ch.  482  n  1978d  (7),  corrected  by  chs.  677  and  678 

Ch.  501  r  19461  (4),  19461  (2,  3.  4  and  5) 

Ch.  501  a  1926  (4),  20.55  (4)  1978d  (6) 

Ch.  501  n  20.57  (9),  2394-52,  (5b),  2394-71 

Ch.  523  a  1770c,  1772  (2) 

Ch.  599  a  1947  (3) 

Ch.  604  Authorizes  the  investigation  of  Social  Insurance 

Ch.  624  Codifies  and  amends,  2394-1  to  2394-31 

Ch.  637  r  2394-27  (4) 

Ch.  637  n  1921-1  to  1921-29 

Ch.  637  n  20.555 

Ch.  639  a  51.331 

Ch.  655  a  1896m  (1) 


240 

Laws  of  1919 


Ch. 

12 

r  20.55 
a  20.555 

Ch. 

27 

a  20.08  (1) 

Ch. 

70 

a  1897a 

Ch. 

71 

n  1966-34   (5) 

Ch. 

87 

a  1915m  (6) 

Ch. 

93 

a  1967,  1967a 

Ch. 

101 

a  1897c   (2) 
n  1897c  (2) 

Ch. 

110 

renumbers   sections   51.31   to  51.34   to  be   1211-31   to 
1211-38 

Ch. 

136 

n  1921-30  to  1921-36 

Ch. 

177 

a  19550  (2) 

Ch. 

207 

a  1957  (5) 

Ch. 

235 

a  20.55   (4) 

Ch. 

248 

n  4202p. 

Ch. 

300 

a  1926  (2) 

Ch. 

327 

a  1952c  (1) 

Ch. 

334 

n  2619 

Ch. 

353 

Corrects  all  references  to  51.31   to  51.34  as  renum- 
bered by  Ch.  110 

Ch. 

361 

Repeals  and  re-enacts  1946d 

Ch. 

389 

r  20.56   (2) 
a  20.73  (2) 

Ch. 

425 

a  1211-36,  1772  (2),  1897b  (1),  1897s  (a  &  c),  1898 
(4),  1901J,  1905  (1),  1916  (1),  1920,  1921-23, 
1941-64,  1941-65,  1943m,  1946-18,  1947a,  195S  (2), 
1959  (28), 

r  1958  (part  of  15) 

n  1897c  (1),  1943m  (11) 

Ch. 

451 

a  1935  (1) 

Ch. 

536 

a  1897a  (3),  1960  (12) 

Ch. 

599 

r  20.57  (9) 

Ch. 

616 

a  part  of  1957  (10)  and  renumbers  to  be  58.06 

Ct. 

655 

n  1966— 33a  to  1966— 33n 

Ch. 

671 

a  1919m  (5),  1926m  (3),  1947  (5) 

Ch. 

679 

a  1958    (8) 

Ch. 

679 

a  2637    (9) 

Ch. 

702 

a  1947a 

Ch. 

703 

n  20.57    (9) 

renumbers  4202m  to  be  1977 — 1 
renumbers  4202s  to  be  1977—2 
renumbers  4202p  to  be  1977—3 
renumbers  1977a  (1)  to  be  1977 — 4 

241 


Laws  of  1921 

Ch.   7 

r  1087-(15) 

Ch.  59 

r  64hh 

Ch.  170 

a  1928-(1) 

Ch.  171 

a  1935-(1) 

Ch.  283 

a  1958-(18) 

Ch.  298 

a  1901J 

Ch.  310 

a  1951 

Ch.  363 

a  1773 

Ch.  385 

a  1943a 

Ch.  465 

a  1903 

Ch.  451 

a  2394-(27) 

Ch.  469 

a  1941-(64) 

Ch.  510 

a  1211-(37) 

IC 


INDEX 


References  are  to  sections.     See  Table  of  Contents  for  chapters  of 

statutes. 


Abandonment  of  property,   standard  fire  policy,  prohibited,  1941x 
Absconding-,  insured,  life  policy,   4438e 

Accident  and  health  insurance,  stock   companies  may  write,   1947a 
Accident  and  health  insurance  companies 

authorized.    1897    (4) 

reinsurance,    1955 — 22   to   1955 — 26 
Accident  and  health  policies 

application,  alteration,  1960   (8) 

application,  warranty,   1977 — 1 

assessment  plan  1955y — 3 

approval    by   commissioner,    1960    (1) 

conditions  prohibited,  1960   (4,  5) 

optional    standard   provisions,    1960    (4),    (5) 

penalties,   1960    (13) 

reciprocal   provisions,    1960    (10) 

standard  provisions,   1960    (3) 

standard  provisions,  exceptions,   1960    (12) 

validity  of   non-standard   forms,    1960    (9) 

valuation,   1950d   (3) 

waiver  of  rights,   1960   (7) 

warranty,  effect  of,  1977 — 1  (2) 
Accident  associations,  deposit,   1958,   (4)    (5) 

single   risk,   1958    (6) 
Accident  insurance 

authorized,   1897    (4) 

deposit,   1958    (4)    (5) 

liability,   1958    (6) 

maximum   single   risk,   1958    (6) 

noticeof  injury,   time  limit,  1960,   3    (15),   1966 — 49a 

time   for  beginning  action,   1900,   1945b,   1960,   3    (14) 

uniform   standard   provisions,   1900 

see  health  and  accident  insurance 
Accident  societies,  authorized,   1956    (8) 
Accounts,  audit,  state  life  fund,  19S9m  (17) 
Accumulation  basis  of  valuation.  1959   (22m) 
i^ctions 

affecting  license  fee,  service  of  summons,  1211 — 3S   (2)    (3)    (4) 

by  credit  guarantee  company  for  debts,  1966 — 40 

by  receiver  for  assessments,  1945b 

evidence.  4182a 

fidelity  bond,  security  for  costs,   3783a 


243 

Actions — continued 

forfeitures,   attorney-general  to  act,   3300 

forfeitures,  collection,  3299 

limitation  of  time  for  beginning-,   1900,  1941x,   1945b,   1960,    3    (14) 

not  abated   by  consolidation,    1908m    (4c) 

not  to  be  removed  from  state,  1915  (2),  1917   (2),  1947   (5) 

Actions  against  insurance   companies 

by  commissioner,  recovery  of  forfeitures,  1972a 

casualty    company,    impairment,    1966 — 46 

forfeitures,  3299,  3300 

health  and  accident  insurance,  1960,  3   (14) 

in   behalf  of   policyholders,   1970o,   1970p 

inspection  of  books,  4183  , 

insolvency,    1970m,    1970n 

joinder  as  defendants,  2609a 

notice  to  commissioner,   3219m 

receivership   by  commissioner,    1970m 

service   of  process,   1915    (2b),    1915m    (4),    1919,    1941x.   1947    (5),    1958 
(17),  2637   (9,  10,  11) 

where   held,   2619 

see  removal  of  cause 
Actions  by  insurance  companies 

assessments,  evidence,  4182,  4182a,   4183 

estoppel,  disability  company,    1977 — 2 

estoppel,  life  company,  1977 — 2 

foreign  company  on  assessments,  limitation  for  beginning,   1945b 

town  mutuals,   for   assessments,   1936 
Actuarial  computations 

accumulation  method   of  valuation,   1959    (22m) 

actual  experience  valuation,  1959   (22m) 

amortization  method  of  valuing  bonds,   1951f 

annuities  and  life  insurance,   combination  of,   1989m    (16)  , 

annuities,  industrial   insurance,   1950d 

annuities,  mutual  and  stock  life  insurance,   1947o 

annuities,  premiums  for,  based  on,   1989m   (5)    (6) 

annuities,   regulation  life  insurance,   1947o 

apportionment  of  credits,   1959    (22m) 

expectancy  of  life  not  used,  see  foot  note  to  3S71m 

Mobile   Bill    valuation,    1959    (22) 

mortality    charge,    defined,    life    insurance,    1946x 

mortality  savings,  report,  life  insurance,   1950n 

mortality    tables,    life    insurance,    1948m,    1950,    1950c,    1950d,    1950m, 
1989m   (4) 

mortality  tables,  mutual  insurance,  1948m,  1958   (2),   1959    (22) 

mutual  benefit  societies,  may  request,   1959   (22)    (22m)    (22n) 

mutual  benefit  societies,  organization,   1958 

New  York  conference  bill,   1959   (22m) 

probability  of  living  or  dying,  foot  note,  3871m 

table  of  credits,  1959   (22m) 

tabular  basis,   1959    (22m) 

test  of  solvency,  1959   (22m) 

"23b,"  1959    (22m) 

see  Experience  Tables  of  Mortality 
Actuaries  Table  of  Mortality,   1950    (Ic),    (Id),   1950c 
Additional  commissions  prohibited,  life  company,   1950s 
Added  clauses,  standard  fire  policy,  1941x 
Adjusters 

fire  and  lightning  losses,  1943m 

licensed  agents  may  be,  1943m 

town  mutuals  exempt,  1943m  (10) 


244 

Adjustments 

report  of,  1943m   (5) 

state  insurance  fund,  1978c 

state  life  fund,   1989m   (12) 
Admission  of  foreign  companies 

assessment  life,  1955y — 1 

casualty  companies,  1915    (1) 

commissioner  may  refuse,  1968  (4) 

examinations,  1915   (7).  1916   (2,  3),   1948,   1958   (16),   1959    (25),   1968 

fees,  1972,  76.34 

fire,  1915   (1),  1948,  1968 

interinsurers,    1915ni 

license,  1976 
'  life  companies,   1947    (5) 

Lloyds,  1915   (Ic) 

mutual  benefit  society,  1958  (16) 

rates,  1946 — 1  to  1946 — 18 

reinsurance  company,  1914a 

retaliatory  law,  76.35 

surety  company,  1966 — 34 

to  comply  with  law,  1978 

see  Insurance  companies 
Admission  of  service  of  process,  1915   (2b)    (2c) 
Advertisements,   misrepresentation: 

assets,  1946a 

capital,  surplus,  1946b 

concealing   identity,   penalty,   1946em 

dividends,  1946f 

penalties,  1946c,  1946e,  1946f 

risks,  1946c 

see  misrepresentation 
Advances  to  agents,  limited,  life  company,  1950n,  1950q 
Advisory  board,  contracts,  1955o   (3) 

Age  limits,  mutual  benefit  societies,  1957   (3),  1958   (18) 
Agents 

acting  after  revocation  of  license  of  mutual  benefit  society,  4575c 

acting  for  unauthorized  fire  company,  penalty,   1919f,   4575s 

acting  for  unauthorized  mutual  benefit  society,   4575d 

acting  in  sale  of  stock,  disclosure  required,  lS97f 

adjustments  by,  1943m 

board   of  underwriters,   1922   to   1926 

bond,  surplus  lines,  1919m   (6) 

combination  prohibited,  exception,  1943b 

commissions,   1919a,  1955o   (2d),   (2e),  1976   (5) 

commissions  limited,  life  companies,  1950q 

commissioner  may  examine  records  of,   1919a 

commissions  on  own  insurance,   1955o   (2c) 

commissions  to  be  reported,   1977 — 4 

compensation,  life  companies,  1950r 

compensation  of,  limited,  1950r 

countersigning  policies,   1919a  (2) 

defined,   1977 

discrimination  prohibited,   1955o   (1) 

division  of  commissions,  1955o   (2e) 

extending  credit,   rebate,   1955o    (2i) 

first  applications,  life  company,  1947  (3a) 

for   sale  of   stock,   1897f 

liability  to  insured,   unauthorized   insurance,   1919f 

license  revocable  as  to  each  class  of  business,  197Cm 

life  company,  qualifications,  1976  (7) 

local  boards,  1922  to  1926 


245 

Agents — continued. 

may  be  adjusters,    1943m    (1) 

misrepresentation,  life  companies,  1946f 

must  be  licensed,  1976 

must  be  resident  of  state,  exceptions,  1919a  (1)   (6) 

mutual  benefit  society,  1976  (1) 

name  on   policies,   1941 — 64    (4) 

name  to  be  mailed  to  commissioner  on  day  licensed,  1976  (2) 

non-resident,  division  of  commissions,   1955o    (2e) 

penalties,  1949,  1955o  (4b),  1955o  (5)    (5f),  1955o — 5,  1976  (4) 

rebating-,   1955o 

reinsurance  companies  not  to  write  through,   1914a 

release  from  liability,   surplus  lines,   1919m   (3) 

reports,  surplus  lines,  1919m  (5) 

resident  law,  1919a 

revocation  of  license,  1955o   (5),  see  agents'  licenses — revocation 

schedule  of  commissions,   1977 — 4 

service   upon,   for   company,    1919,    1947    (5),    2637    (9) 

soliciting  during  organization   of  life   insurance   company,   1947    (3) 

subject  to  commissioner's  inquiries,  foreign  company,  1916   (2) 

surplus  lines,  1919m 

to  countersign  fire  insurance  policies,  1919a  (2) 

twisting,   1946f    (3) 

unauthorized  company,  1919f,  4575s 

unauthorized  insurance,  1919m 

unauthorized  mutual   benefit  societies,    4575c,   4575d 

who  are,  1977,  1989m   (13b) 

who  may  receive   commissions,   1955o    (2e) 
Agents'   licenses 

accident  and  health,  mutual  benefit  societies,  1960   (13),  1976   (1) 

adjusting  losses,  fire,  1943m 

company  to  issue,  1976    (2) 

corporations  cannot  obtain,  1976   (6) 

destruction  of,  1976m 

exceptions,  1915    (Id),  1919a  (6),  1976   (1),  1977 

fees,  1972  (Ic) 

fees,    reciprocal    law,    76.36 

fees,   retaliatory   law,    76.35 

filing  of,  1976  (2),  1976m 

fire  companies,  1972 

forfeiture,  1972a,  1976  (4) 

interinsurers    excepted,    1915    (Id) 

issue  by  company,   1976   (2) 

life  companies,   1972,  1976   (7) 

Lloyds  excepted,  1915   (Id) 

mutual  benefit  societies  writing  health  and  accident  insurance  must 
procure,    1976    (1) 

precedent  to  transacting  business,  1976  (1) 

return  to  commissioner,   1976    (2) 

revokable  as  to  each  class  of  business,  1976m 

separate  for  each  person,  1972c 

when  not  affected,  1976   (3) 
Agents'  licenses — -revocation 

adjuster's  license,  violation,  1943m   (3) 

effect  of  revocation,  1917  (3,  4) 

impairment  of  capital,  1917   (2c) 

foreign  company,  refusing  to  comply  with  law,  1916   (2)   1917  (2) 

foreign   company,   impairment,    1968    (3) 

foreign  company,  violation  of  law,  1972a 

life  company,  violation  of  law,  1972a 

life  company,  removal  of  cause,  1947   (5) 


246 

Agents'    license's — continued. 

misrepresentation,  1946c 

premium   notes,  contents,  violation,   1944 

rebating,   1955o   (5)    (5m) 

removal  of  action  to  U.  S.  court,  1917   (2),  1947   (5) 

surplus  lines,   1919m   (8) 

violation    of    adjustment    law,    1943m    (3) 

violation  of  coinsurance  law,  1943a 

violation  of  resident  agent   law,   1919a   (7)  • 

violation  of  standard  policy  law,  1941 — 65 

unauthorized  insurance,  1919f 

see  penalties,  forfeitures,  revocation 
Amended  laws,  see  table  preceding  this  index 
Amending  articles,   see  articles 

American  Experience  Table  Select,  1950c,   1950m   (2) 
American  Experience  Table  of  Mortality: 

basis   of  valuations,    1950,   1950c,   1950f,    1950m,    1952,    1955y — 1,    19S9m 
(4),   3871m 
Amortization  method  of  valuation,    1951f 

see  actuarial  computations 
Amount  at  risk 

admission  of  interinsurers,   1915m    (3f) 

basis  of  maximum  single  risk,  1898   (b) 

defined,   life   companies,   1946x    (1) 

Lloyds,   1915    (Ic) 

niinimum  outstanding,  1898d 

see  risks 
Amount  of  recovery 

coinsurance,   1943a 

standard  fire  policy,   1941x 

valued  policy  law,  1943 
Annual  dividends 

ascertainment,    life    companies,    1952b 

cannot  be  deferred,  1957   (5m) 

life  companies,  1952a 

mutual  benefit  societies,   1957    (5m) 

report,  life  conipanies,   1954    (28) 

statement  of,  to  commissioner,  1952c 

statements    insured,    1952d 
Annual  statements 

agents'   commissions,   1977 — 4 

commissioner   to   provide  form,   1971 

commissioner  to  publish,   1971 

companies  to  make,  1915    (5),  1919d,  1920,  1954,  1958   (15a),  1959   (23), 
1971 

contents,  1920,  1953n,  1954,  1971 

extension  of  time,  1971 

fees.   1972 

fire  companies,  contents,  1920 

fire   companies,   reinsurance,    l&19d 

foreign  companies,   1915    (5) 

form  of,  1954,  1971 

interinsurers,   1915m 

life  companies,  1953n,  1954 

life  fund,  1989m 

mutual  benefit  societies,   1958   (15f),   1959   (23) 

publication   of  liy  commissioner,    1971,   1972b 

receivers  and  trustees,  1921 

to  show  legislative  expenses,  1953e 

town  mutual   companies,   1938 

see  reports 


247 

Annuities 

state  life  fund,  1989m  (5)   (15) 

valuation  of,  1950d  (2) 

see  actuarial  computations 
Anti-compact  law,  schedules  of  rates,   1943b  see  1946 — 1   to   1946 — 18 
Anti-discrimination  law,  1921 — 1  to  1921 — 36,  1955o 
Anti-rebate  law,   1955o 
Applications 

accident  and  health,  1960  (8) 

copy  attached  to  policy,  1900 

for  admission  of  foreign  companies,   1915 

for    risks,    mutuals,    1897s,    1897t    (a) 

interinsurers  to  certify  number,   1915m    (2f) 

life  companies,  copy  to  policyholders  on  request,   1953b 

life  companies,  defense  barred  when,   1953b 

limitations,   1900 

mutual  companies,  to  be  filed,  1897e 

of  reserve,  1912 

precedent  to  beginning-  business,  lS97t   (a) 

premium,  statement,   1948m    (2) 

prohibited   provisions,   1900 

standard  fire  policy,  1941x 

state  life  fund,   1989m   (7) 

to  show  premium,  when,  1948m   (2) 

town  mutuals,  1927,   1897t 

unauthorized  company,   penalty,    4575s 

warranty,  1977 — 1 
Appointment 

attorney  for   service   of   process,   1915    (2),    1915m    (4),   1919,   1947    (5), 
1958   (17),  2637 

commissioner  of  insurance,   1966y 

chief  assistant  fire  marshal,   1946h 

deputy  commissioner   of  insurance,   1967a 

deputy  fire  marshal,  1946h 

employes,  department  of  insurance,   20.73,   1967a,   1968 

employes,  state  fire  marshal,  1946h 

state  fire  marshal,  commissioner  ex  officio,   1946h 

subordinates,  department  of  insurance,  20.73  (1),  1967  a,  1968 
Apportionment  of  credits,  1959   (22m) 
Apportionment,  dividends,  life  company,  1952  to  19521 
Apportionment  not  deferred  for  more  than  one  year,   1957    (5m) 
Appraisal,  standard  fire  policy,   1941x 
Appropriations,   commissioner  of  insurance 

as  ex  officio  state  fire  marshal,  20.55  (4) 

assistant  fire  marshal  20.55  (4) 

attending  national  convention,  20.55   (lb) 

chargeable  for  printed  reports,  1971 

examination  of  companies,  20.55   (3) 

fees  and  mileage,  20.55   (4b) 

for  payment  of  fire  department  dues,   20.56   (3) 

for  refunds,  20.06 

general   administration,   20.55    (1) 

Industrial  commission,   20.57   (9) 

investigation  of  fires,   20.55    (5) 

salaries  of  employes,  20.55,   20.73 

salary  of  commissioner,  20.55   (la) 

salary  of  prosecuting  attorney,  arson,  1946j 

state  aid  for  fire  protection,  20.56 

traveling  expenses,  20.73   (2) 

valuation  fees,   20.55   (6) 


248 

Arson 

attorney-g-eneral's  duty,   1946j   (2) 

penalties,   1946j,   4405 

prosecution,   1946j 
Articles 

fees  for  filing,   1772   (9) 

filing,  1770b,   1772 

general  provisions,  1774,  1774n 

increase  of  capital,  1908,  1908a 

life  company,  1947  (4) 

limitation  of  term  removed,  1941n 

may  limit  liability,  1897c  (2) 

mutual  benefit  society,  1958,  (7)   (16a) 

mutual  company,  1896m,   1897c 

mutual  companies,  contents,  1897c 

mutual   companies,   validated,  1896m   (3) 

recording,   1772,  1896 

reduction  of  capital,   1966 — 46,   1970 

to  be  filed  with  commissioner,  1896 

town  mutuals,  1927  (3c),  1931 
Articles,   amendments  to 

assessment  life,  1955y — 2 

change  of  name,  1774 

consolidation,   1908m 

domestic  companies,  1774,  1774n,  1896m,  1897c 

fees  for  filing,  1772   (9) 

filing,  1770b   (2),  1774 

increase  of  capital,  1774n,  1908,  1908a 

life  companies,  1947   (4) 
mutual  benefit  society,  1958   (7) 
mutual  companies,  1774,  1896m,  1897c   (lb) 
recording,   1774 
reduction  of  capital,  1970 
to  be  filed  with  commissioner,  1896 
town  mutual  companies,  1927   (3c),  1931   (c),  1940 
town  mutual  companies,  dissolution,  1927   (3c) 
town  mutual  companies,  validated,   1927m 
Assessment  life  companies,  1955y — 1,  1955y — 2 
Assessments 

action  to  recover  by  foreign  mutual  company,  time  limited,  1945b 
action  to  collect,  town  mutual  companies,  1936 
borrowing  money  for,  town  mutual  companies,  1935 
certificate  is  presumptive  evidence,  4182 
defined,  mutual  benefit  societies,  1956  (10) 
evidence,  4182 
foreign  mutual,  19451 

graded  on  N.  F.  C.  4%  Table  of  Mortality,  1958 
mutual  benefit  society,  1956   (10) 
restoration  of  capital,  1969 
stock  casualty,   1966 — 46 
stock   company,   1969 
town  mutual   companies,   1935,   1936 
Assessment  Health  and  Accident  Association 
how  organized,  1955y — 3 

may  assume  disability  risks  only,   1955y — 3 
Assessment  life  companies 

assessment  life  may  reorganize  as  legal  reserve,  1955y — 2 

exempt  from  taxes,  76.34  (2) 

organization   prohibited,    1955y — 1    (3) 

reorganization,    1955y — 2 

reserves,  1955y — 2  (3) 

valuation  of  existing  policies,  1955y — 1 

valuation  of  policies  if  reorganized,  1955 — 2   (2) 


249 

Assets 

basis  of  single  risk,  casualty  associations,  1958   (6) 

basis  of  single  risk,   generally,   1898 

if  not  equal  to  liabilities,  life  companies,  1949 

in  United  States  to  be  shown,  1946a 

life  companies,  report,  1954  - 

representation   as  to,   1946a 
Assignment,  fire  policy,  1941 — 63 
Assignment,  life   policy,   1947c 

by  married  women,   2347b 
Assistant  fire  marshal 

appointment,    1946h 

appropriation  for,   20.55   (4) 
Attorney-general 

member  of  reinsurance  commission,  1955 — 24 

to  bring  action  for  policyholders,  1970o 

to  institute  suit  tQ  collect  license  fees,  76.37   (4) 

to  prosecute  arson  cases,  1946j   (3) 

to  prosecute  violations  of  law,  1972a 
Attorney-in-fact 

see  interinsurers 

see  Lloyds 

surety  company,   1966 — 33b 
Authorization  of  insurance  companies 

assessment  life,  reorganization  into  legal  reserve  company,  1955y — 2 

classification  of,  1897 

fidelity,    1897    (7) 

general  corporation  provisions,  1896 

interinsurers,  1915m 

life  insurance,  stock  or  mutual,  1947 

Lloyds  associations,  1915 

mutual  benefit  societies   (fraternal),  1958 

reinsurance  companies,   1914a 

suretyship  companies,   1966 — 33a 

stat^  insurance  for  public  buildings,  1978a 

state  life  fund,  1989m 

stock  or  mutual  plan,   1897a 

town  mutuals,   1927 

town  mutual  reinsurance,   1941a — 1 

workmen's  compensation,  2394 — 26 
Automobile  insurance 

authorized,   1897    (2),    (5) 

floater  policy  permitted,  need  not  use  standard  fire  policy,  lS97a   (5) 

town  mutual   companies,   1931    (2ra; 
Audit,  state  life  fund,  1989m  (17) 


Ballot,  life  companies,  1947f  to  1947j 

see   elections 
Bank  balances 

fire  companies,  1920   (2) 

life  companies,  1954    (26) 
Bank   deposit   insurance 

authorized,  1897    (9) 

maximum  single  risk,  1898   (3) 

reinsurance,  1898  (4)' 
Bankruptcy 

see  insolvency 
Basis  of  annuities,  life  fund,  1989m   (5) 


250 

Basis  of  single  risk 

accident   associations,   1958   (6) 

bank  deposit  guarantee  companies,  1898  (3) 

stock  and  mutual  companies  generally,  1898 
Basis  of  taxation,  1211 — 37 
Basis  of  valuation,  see  valuation 
Beneficiary 

change  of,  mutual  benefit  societies,   1957   (5) 

corporations  may  be  named  as,  1957   (5) 

defined,  1946x 

rights  of,  health  and  accident  policies.  1960,  3   (13) 

rights  of  married  woman,   2347,  2347b 
Benefits 

equivalents,  policy  provisions,  1948m  (41) 

forfeiture,  mutual  benefit  societies,  1958   (2) 

on  lapse,  mutual  benefit  societies,  195S  (2) 
Blanks,  town  mutuals,  to  be  filed,  1927   (7) 
Blue  sky  law,  1897f 

Board,  compensation  insurance,   1921 — 1   to  1921 — 29 
Board  of  fire  underwriters,  1922  to  1925 

see  insurance  rate-making,   1946 — 1   to   1946 — 18 
Bond 

commissioner   of   insurance,    1967 

commissioner  of   insurance,   life  fund,   1989m    (2) 

deputy  commissioner,    1967a 

state  treasurer,  life  fund,  1989m   (2) 
Bonds,  amortization  of,   1951f 

Bondholders,  insolvent  company,  to  be  notified,   1966 — 34    (5) 
Bonds  and  stocks,  see  investments 
Bonuses  and  prizes  prohibited,  1950s 
Borrowing  money 

life  companies,   1947    (3)    (a) 

surplus  notes,  mutual  companies,  1897g  (4) 

town   mutual    companies,   to   pay.  losses,    1935 
British  Friendly  Society  Table,  1876  to  1880,  1950d  (3)  • 

British  Offices  Annuity  Tables  1893,  1950d  (2),  1989m   (5) 
British  Offices  Select   (Om)  Mortality  Table,   1950c 
Buildings 

county,  city  and  village,  state  fund,  1978d 

dilapidated,  repair,   1946  1,   2394 — 52   (5a) 

inspection   of,    2394 — 52    (5b) 

right  to  review,  fire  marshal,   19461    (1) 

to  be   insured,  investments,   1903 
Bureaus 

rating,  fire,  1946 — 1  to  1946 — 18 

compensation  insurance  board,   1921 — 1   to   1921 — 29 

see  insurance  rate-making 
Burglary   insurance,   authorized,   1897    (1) 
By-laws 

amendments,  1941g  (3) 

companies  must  adopt,  1897d 

effective  only  as  part  of  policy,  health  and  accident  insurance,   1960 
(5) 

effective  only  as  part  of  policy  contract,  generally,   1900 

foreign   mutual   benefit    societies,    1958    (16a) 

penalty  for   not   filing.   1897d 

provisions,  1904 

repealed  laws  to  be  part  of,   1941g   (2) 

town  mutuals  filing,  1927    (7) 
Burning  property  to  injure  insurer,  penalty.  4405 


251 

c 
Cancellation 

general  provisions,   1946d 
health  and  accident  insurance,  1960,  4   (16) 
short  rate  table  1946d 
standard  fire  policy,  1941x 
town  mutual  companies,   1937 
Capital 

after  consolidation,  1908m 

casualty  insurance  companies,  1966 — 45,  1960 — 46 

consolidation,   limitation,   1908m 

domestic  stock   companies,   1897g 

fire   companies,    1968 

foreign  companies,  1915   (la),   (4),   (6) 

impairment,  1912,   1913,  1917,  1949 

impairment,  casualty  company,   1966 — 46 

impairment,  life  company,  1949 

impairment,    suretyship    company,    1966 — 46 

increase,  suretyship  company,  1946 — 45 

increase,  1774n,   1908,  1908a,   1908m 

increase,  casualty  company,   1966 — 45 

investment,  1902,  1903,   1951 

life  companies,  1947   (3),  1951,   1951f 

Lloyds,  exempt  from,  1915   (2c) 

paid  in,  1773 

reduction,  1970 

reduction,  casualty  company,  1966 — 44 

reduction  of,   commissioner  may  permit,   1970 

reinsurance  corporations,  1914a 

representation  as  to,   1946b 

requirements,  domestic  companies,   1773,  lS97g' 

requirements,  foreign  companies,   1915 

restoration,  1913,   1969 

scope  of  law,  1914 

fidelity    insurance,    1966 — 33c,    1966-33d 

title  guaranty  insurance,  see  section  1777g,  Stats. 

see  investments 
Cash    surrender,    life    fund,    1989m    (11) 
Casualty  insurance 

authorized,  1897 

capital,  1966 — 45,  1966 — 46 

credit  guarantee  business,   1966 — 40 

dissenting  directors  not  liable,  1966 — 44 

dividends  1966 — 44,   1966 — 45 

employers'   liability  policies,   1966 — 42 

fidelity  bond,  1966 — 33,  1966 — 34 

foreign,  admission,  1915 

impairment,  commissioner's  duty,  1966 — 46 

increase  of  capital,  1966 — 45 

policy    conditions,    1966 — 49a 

reserve  liability,  1966 — 47 

see  health,  accident,  and  health  and  accident  companies 

see  misrepresentation 
Certificate  of  authority,   see  company  license 
Certificate  of  commissioner 

approving  amendments,  town  mutual  companies,  1927   (3c) 

approving  articles,   town  mutual   companies,   1927    (3a) 

contents,  domestic  mutual  companies,  1897t 

fee  for,  1972   (Ic) 

may  be  withheld,  1968   (4) 

suretyship  companies,  contents,   1966 — 34 

valuations,  life  companies,  1950   (7) 


252 

Certificate  of  deposit  with  state  treasurer 
accident  association,  1958  (4) 
life  companies,  1973 
Certificate  for  stocl<,  contents,  1760 
Certificates,  see  mutual  benefit   societies 
Chapters  of  statutes,  see  table  of  contents 

see  table  preceding  index 
Chattel  mortgage,  standard  fire  policy,  1941x 
Chiefs  of  fire  departments 

deputies   of   industrial   commission,   2394 — 71 
to  make   inspections,   2394 — 71 
Children  insurable  in  mutual  benefit  societies,   1958   (IS) 
City  and  village  mutual  companies 
laws  repealed,  1941g  (10) 
by-laws,  affected,  1941g  (2) 
see  mutual  companies 
Civil  actions,  joinder  as  defendants,  2609a 
Classification  and  filing  of  risks,  rate-making,   1946 — 16 
Classification 

directors,   fire  companies,   1945f 
directors,  town  mutual   companies,   1928 
insurance,   1897 

members,  mutual  benefit  societies,  1958  (2f) 
risks,  mutual  companies,   1901m 
see  directors 
•    see  risks 
Claims 

resisted,  life  companies,  1954  (27) 

sufficiency  of  notice,  health  and  accident  insurance,   1960,   3   (5) 
time  limit  for  beginning  action,   1900,   1941x,   1960,    (3)    (14) 
time,  notice  of,  health  and  accident  insurance,  1960,   (3)    (4) 
Class  mutuals,  laws  repealed,  1941g 
Coinsurance  clause,  insurer  may  bear  first  part  of  loss 

reduced  rate,   1900f 
Coinsurance   clause,   requiring   percentage    of   insurance    coverage 

reduced   rate,   1943a 
Collateral  security,   investments,   1903   (2) 
Combination  policies,  state  life  fund,  1989m  (16) 

see  health,  accident,  and  health  and  accident 
Commission    to   hear   petitions,    reinsurance 

governor,  attorney-general  and  commissioner   of  insurance,   1955 — 24 
Commissioner  of  insurance 

accounts  of,  life  fund,   1989m    (17) 

action  for  policyholders,  1970o 

admission  of  service  of  process,  1915    (2b),   (2c) 

annual   report  of,   1971,   1972b 

appointment,  1966y   (1) 

appraisement,  future  estates,  72.15  (4),  3871m 

appropriations,   20.06,  20.55,  20.56 

approval  of  accident  or  health  policies,  1960  (1) 

approval  of  fire  policies,  1941 — 64    (1) 

approval  of  life  and  disability  policies,   1948f 

approval  town  mutual  policies,   1932 

appointment  of  assistants,  20.55.  20.73 

assessment  by  foreign  company,  notice  to,  19451 

attorney  for  service  of  process,   1915   (2b),   1915m   (4),   1919,   1947    (5), 

1958   (17a),   2637   (9,   10,   11) 
ballot  form,  life  companies,  filed  with,   1947f 
blank   statement,   form,   1920,   1954,   1971 
bond,  life  fund,  1989m   (2) 
bond,   cost   chargeable   to   appropriation,   1966 — 38,   1967 


253 

Commissioner  of  insurance — continued. 

books  to  be  examined  quarterly,  1972c 

certificates  of  nomination,   life  companies,  filed  with,   1947g   (4) 

commissioner  of  banking,  powers  conferred  on,  1970n 

convention  of  commissioners,  attendance,  1972c 

deputy,  employes,   1967a 

deputy,  appointment,  powers,  1967a 

duty  of,  guaranty  surplus  fund,   1909 

employes'   salaries,   20.55,   20.73,   1967a 

examination  of  rating  bureaus,  1946 — 6 

axaminations,    1897t,    1908,    1908m,    1912,    1915    (7),    1916,    1919a,    1948, 
1958   (16).   1959   (24,  25,   26,   27),  1968 

ex  officio  state  fire  marshal,   1946h 

fire  policy,  standard  form,  preparation,  1941x 

fire  insurance,  adjuster,  regulations  by,  1943m 

fire  insurance,   state  fund,  supervision,  1978d 

fire  insurance  companies,  report  to,  1920. 

life   fund,    supervision,    1989m 

life  companies,  report  to,  1954 

manager  of  life  fund,  1989m   (2) 

member  of  compensation  insurance  board,  1921 — 2 

member  of  commission  on  reinsurance,   1955 — 24 

monthly  reports,   1972c 

National  Convention  of  Insurance  Commissioners,   20.55,   1972a 

notice  of  action  against  companies,  3219m 

oath  and  bond,   1967 

office  in  Capitol,  1967 

orders,  court  review,  1970p 

petition  to  court  on  insolvency,  1970m 

petition  to,  reinsurance,  1955 — 21 

powers  of  commissioner  of  banking  conferred  on,   1970n 

power  in  case  of  insolvency,  proceedings,  1966 — 34   (5)   1970m   (3) 

qualifications,  1966y  (2) 

rates,  compensation  insurance,  supervision,  1921 — 1  to  1921 — 29 

rates,  fire  insurance,  supervision,  1946 — 1  to  1946 — 18 

remittances  to   state   treasurer,   1972c 

report,  contents,  1972b 

report  of  fire  department  dues,  1926m 

report  to  governor,  1972b 

reinsurance,  life  companies,  duty  regarding,   1955 — 23 

restrictions,  1966y  (2) 

salary  and  expenses,   20.55,   20.73 

to  adjust  losses  in  state  fund,  1978c 

term   of   office,    1966y    (1) 

to  establish  rates,  fire,  1946 — 11 

to  fix  basis  of  reserve  liability,  1899 

to  give  notice  of  violation  of  law,  1972a 

violation,  life  companies,  1950  to  1950f 

see  state  fire  marshal 
Commissions 

agent's  own  risk,  1955o  (2c) 

division  of,   1955o   (2c) 

division  of,  agent's  licenses,  1976  (5),  1955o  (2) 

insurance,  stock  salesman,  1897f 

person  sharing  disclosed,   1897f   (3) 

rebating  penalty,  1955o   (4b) 

schedule  to  be  filed,  1977 — 4 

to  agents,   limited,   1950q 

to  domestic  corporation,  1955o   (2d) 

who  may  receive,  1919a   (2),  1955o   (2e),   1976   (5) 

see  agents 


254 

Common  schools,  fire  drills,  penalty  if  not,  40.30   (6) 
Companies  authorized 

admission,  foreign,   1915 

assessment  life,  reorganization  into  legal  reserve  company,  1955y — 2 

classification  of,  1897 

general  corporation  provisions,  1773,  1896 

interinsurers,   1915m 

life  insurance,  stock  or  mutual,  1947 

Lloyds  associations,   1915 

mutual    benefit    societies    (fraternal),    1958 

reinsurance  companies,  1914a 

suretyship  companies,    1966 — 34 

state  insurance  for  public  buildings,   1978a 

state  life  fund,  1989m 

stock  or  mutual  plan,   1897a 

town  mutuals,   1927 

town  mutual   reinsurance,   1941a — 1 

workmen's    compensation,    2394 — 26 
Company,  defined,  1895m 

see  insurance   companies 
Company  licenses 

actions  to  compel,  condition,   76.37    (3) 

commissioner  may  destroy  records  after  six  years,  197Cm 

conditions  precedent  to  issue,  1897g,  1897s,  1897t,  1916   (5),  1917,  1948, 

1953d,   1953e,  1968 
domestic  companies,  1897t,  1917 
examination  first,  1897t,  1948,  1968  (4) 
fidelity  insurance,  1966 — 33a 
foreign  companies,  1915,  1916,  1917 

foreign  companies,  authorized  business  exclusive,   1916   (5) 
general   provisions,    1916    (5),    1917,    1948,    1968 
interinsurers,   1915m,   1916,   1917 
life  companies,  domestic,  1947   (3,  4) 

life  companies,  legislative  expenses  to  be  filed  prior,  1953e 
life  companies,  political  contributions   to  be  filed  prior,   1953d 
Lloyds,    1915    (2c),    1916,    1917 
mutual  benefit  societies,   1958   (3),   (15) 
mutual  benefit  societies,  foreign,  1953   (3),   (16) 
reinsurance  companies,   1914a,   1917 
suretyship  companies,    1966 — 34 
surplus  line  companies,   1919m 
town   mutuals,   1927    (3) 

town  mutual  reinsurance  companies.  1941a — 1  to  1941a — 4 
see  licenses 
Company    licenses-revocation 

accident  and  health,   1960   (13) 

effect  of,  1917   (3,  4) 

failing  to  report  reinsurance,  1919d 

impairment,    casualty   company,    1966 — 46 

impairment,    domestic   company,    1949 

Impairment,  foreign  company,  1917    (2),   1968    (3) 

misrepresentation,   1946c 

noncompliance  with  law.  interinsurers,  1915m   (10) 

nonpayment  of  judgment,  1919e 

rebating,  1955o  (5,  5m) 

removal  of  action,  foreign  life  company,  1947   (5) 

removal  of  action,  foreign  company,   1915    (2) 

revokable  as  to  each  kind  of  business  authorized,  1917  (5) 

coinsurance,   1943a 


255 

Company    licenses — revocation — continued, 
premium  notes,  1944 
resident  agents,  1919a  (7) 
standard  fire  policy  law,  1941x 
violation  of  law  generally,   1955o — 5 
<,'ompany's  options,  standard  fire  policy,  1941x 
I  ^jmpensation  ^ 

adjusters,    1943m 
defined,  1966 — 47a 
for  effecting-  reinsurance,  1955 — 25 
life  insurance  agents,  1950r 
state  officer  or  employe,  4549g 
<  ompensation    insurance    board 
ad  interim  filing,   1921—27 
annual  report  of  bureau,  1921 — 27 
appeal  to  board,  1921 — 19 
appointment  to  board,  1921 — 19 

appointment  of  person    to  hold   hearing,   1921 — 6 
appropriation,  20.555 

assessment  for  operation  expenses   of  bureau,   1921 — 14 
bureau  classification  of  risks,  1921 — 18 
l)ureau  records,   1921 — 19 
classification  of  risks,  1921 — 9 
company  defined,  1921 — 1 
composition  of  board,   1921 — 3 
court  review  of  findings,  1921 — 11 
created,   1921 — 2 
discrimination,  1921 — 20 
expense  loading,  1921 — 7 

filing  information  as  to  writings,  1921 — 26 
filing  of  rates,  1921 — 21 

filing  schedule  of  expense  loading,  1921 — 22 
hearings,  1921 — 19 
investigaJ;ions,   1921 — 11 
license  of  bureau,  1921 — 16 
members  of   board,  how   appointed,   1921 — 3 
merit  rating,   1921 — 7 
minimum  pure  premium,  1921 — 23 
minimum  rate,  1921 — 24 
organization  of  board,  1921 — 4 

organization  and  government  of  rating  bureau,  1921 — 13 
pay  roll  audit,  1921 — 10 
penalty,   1921—18 
pure  premium,  1921 — 7 
rating  bureau,    1921 — 12 
report  of  writings,  1921 — 25 
representation  in  the  bureau,  1921 — 15 
scope  of  statute,  1921—29 
supervision   of   bureau,    1921 — 17 
survey  of  risks,   1921 — 8,   1921 — 18 
testimony,  1921 — 5 
Complaint  for  forfeiture,  '3299 
Complaints,  rate-making,  1946 — 11 
Compliance  with  law,  all   insurers  affected,   1978 
Computations 

see  actuarial  computations 
see  reserve  liability 
Concealment,  fraud  on  life  company,   443Se 
Conditions    of    warranty    made    applicable    to    mutual    benefit    sooieiios. 

1977 — 1 
Conditions  voiding  standard  fire  policy,  1941x 


256 

Conflagration,  efEect  on  capital  and  surplus,  1912 

Consent   to   assignment,  married  woman,   life   insurance,    2347b 

Consent  to  assignment  of  interest,  standard  fire  policy,   1941 — 63 

Consolidation,   1908m,   1955 — 21   to  1955 — 26 

Contests,  prizes,   1950s 

Contingent  appropriations,  20.55 

Contingent  estates,  valuation,  3871m,  72.15   (4) 

Contingent  reserve,  life  companies,  1952a 

Contracts 

contrary  to  law,  binds  company,  1941 — 65 
other  than  policy  prohibited,  life  companies,  1955o  (2a) 
provisions  prohibited,  1900 
purchaser  of  stock,  1897f 
standard  fire  policy,  exclusive,  1941 — 64 
standard  provisions,  health  and  accident,  1960   (9) 
see  policies 
Corporations 

abandonment,  1773 
amended  articles,   1774,   1774n 
beneficiaries  of  mutual  benefit  society,  1957   (5) 
change   of  name,   1774 
continuation  after  dissolution,  1764 
dissolution,   1763,  1764,   1927    (2c) 
general  provisions,  see  Chapters  85,   86,   89 
increasing  capital  stock,  1774n 
may  do  fidelity  business,  when,   1966 — 33a 
may  have  officers  insured,  1748   (8) 
promoters  liable,  1773 
temporary  control,  1773 
to  share  commissions,  1955o  (2) 
votes,  1760 

who  may  organize,   1896 
see  insurance  companies 
Cost  of  insurance,  mutual  benefit  society,   1958   (2) 
County  court,  commissioner,   to   certify   value   of  future   estates,    3S71m, 

72.15    (4) 
County,   city   and   village   buildings  may   be   insured    in    state   insurance 

fund,   1978d 
County  treasury,  forfeitures  paid  into,  3300 
Courts,  jurisdiction 

commissioner's  orders,  hearing,  review,  Dane  county  circuit,   1970p 
companies  not  to  remove  actions  to  U.  S.  courts,   1915   (2),   1917   (2), 

1947   (5),   1958   (16b) 
examinations,  hearing  on,   fees   and  costs  same   as   in   circuit   court, 

1968f  (4) 
fees,   recovery   of,   Dane   county   circuit,   76.37 
fidelity  bond,  justice  court,  3783a 

future  estates,  valuation  by,  may  submit  to  commissioner,  3S71m 
injunction,   insolvency,   issue   by  supreme   court,    3219 
insolvency,    receivership,    petition    to    circuit    court,    1970m 
Credit,  extension,  rebate,  1955o   (2i) 
Credit  guarantee  business,  authorized,   1897    (9) 

powers,  1966 — 40 
Credit  insurance,  separate,  lS97a 

Creditors,   right   in   policy   payable   to  married   woman,   fraud,    2347 
Crops,   hail   insurance,   separate   policy,    1897a   (4) 
Cumulative   vote,  domestic  mutual  life   companies,    1947c,   1947g 
Cyclone  Insurance 

fire  companies,   1945c 

town  mutual  companies  may  assume  risks  of,  1931    (3) 

see  mutual  cyclone  company 


257 

D 

Death  benefits 

children,  mutual  benefit  society,   1958    (18a) 

reserve  for,  basis,  1958  (2a) 

separate  funds,  1958  (2f) 
Deferred  dividends,  see  dividends 
Definitions 

agents,  1977 

assessments,   1956    (10) 

company,  1895m 

insurance  corporation,    1978 

life  insurance  terms,  1946x 

lodge  system,   1956    (2) 

loss,   valued  policy,   1943 

mutual  benefit  society,   1956 

mutual   insurance,   1956 

noon,   standard   fire   policy,    1941x 

organization,  1956  (10) 

workmen's   compensation   insurance   terms,   1966 — 47a 
Delinquent  companies,  see  insolvency 
Demolition   of  buildings,    2394 — 52    (5a) 
Department  of  insurance,  see  commissioner  of  Insurance 
Deposit 

accident  associations,  1958   (4,  5) 

defined,  1946x 

foreign  company,  1915   (4),  1968 

foreign  life  companies,  1950b 

for  examination  expenses,  1968   (5) 

for  payment  of  fees,   20.06 

guaranty  surplus  fund,  1911 

in  another  state,   accident  society,   1958    (5) 

life  company,  foreign  country,   1950b 

reciprocal  law,  76.37 

refund,  20.06 

retaliatory  law,   76.36 

securities,  life  companies,  1973 

securities,    withdrawal,    1918 

unearned  portion  of  premium,  standard  fire  policy,   1941 — 633 

subscribers    at    Lloyds,    1915    (4) 

withdrawal  by  foreign  company,  1918 
Deputies,    special,   liquidating   company,   1970m 
Deputy  commissioner  of  insurance 

appointment,  1967a 

chief  assistant  fire  marshal,   1946h 

powers,  1967a 

salary,   20.55 
Deviation  from  schedule,  fire-rating,  1946 — 9 
Directors 

casualty  companies,   1966 — 44,  1966 — 46 

classification,  fire  companies,  1928,  1945f 

dissenting  not  liable,   employer's  liability   companies,   1966 — 44 

liability,  casualty  company,  1966 — 44 

liability,  mutual  company,  18971   (2),  1945h 

life  company,  transfer  of  stock,  1947   (3e) 

must  attend  meetings,  life  company,  1947k 

mutual  companies,  must  be  members,  1897c 

penalty,   suretyship   company,   1966 — 49 

town  mutual  companies,  classification,  1928,  1929,  1937,  1941a — 3 
Disability  benefits 

mutual  benefit  society,  1958  (2),  1958   (18),  1959   (22) 
reserve  basis,   1950   (Ig) 
17 


258 


Disability   insurance 

see  health,  accident,  and  health  and  accident  insurance 
Discontinuance  of  business 

after  revocation,  1968 

life  companies,  1949 
Discrimination 

employer's  liability  rates,  1921 — 20 

fire  rates,  1946 — 8,  1946 — 10 

liability  insurance  1921 — 30,   1921 — 36 

penalty,  1955o 

premiums,  life  companies,  1955o   (1) 

prohibited,  1943b,   1946 — 1   to  1946 — 18 

sale  of  stock,  18971 

assessments,  foreign  mutuals,  19451 
Dissolution 

by  insolvency,  1763 

three   years  to   effect  settlement,   1764 

how  effected  generally,   1789 

township  mutuals,  1927   (3) 
Distribution  of  rate   schedules  and   forms,   life  fund,    1989m    (6) 
Distribution  of  surplus  by  life  companies,   1952 
District  attorney 

to  be  given  evidence  by  fire  marshal,  1946j 

to  bring  action  for  forfeiture,  3300 
District  of  Columbia,  loans  in,  by  domestic  companies,  1903 
Dividends 

ascertainment  and  credit.  1952a  to  1952c 

casualty  companies,  1966 — 44,  1966 — 45 

deferred,  annual  accounting  to  corrimissioner,   1952c   (3) 
ascertainment,   report,   1952f,   1952h 
diversion   prohibited,   1952g 
fraternal   insurance,   1957    (5m) 
prohibited,  1957    (5m) 
statement  to  policyholder  on  request,  19521 

factors,  life  company,  1952c,  1954   (28) 

fire  company,   guaranty  fund,   1910 

fire  company,  stock,  1908a 

illustration  of  net  cost  of  life  policies,  1946f 

liability  to  policy,   1952c 

life  company,  1952a  to  19521 

mutual   company,   limited,   1897k 

not  rebate,  1955o   (2f) 

representations  as  to  future,  1946f 

statement  to  commissioner,   1952c 

statement  to  insured,  1952d 
Domestic  corporations,  see   insurance  companies 
Domestic  life  companies,  see  life  insurance   companies 
Domestic  mutuals,   see   insurance  companies — domestic 


Earned  premium  defined,  1966 — 47a  (2) 
Elections 

domestic  life  companies,   1947c  to   1947j 

form  of  ballot,  1947g 

independent  ticket,   1947c  to  19471 

mutual  benefit  societies,  1956  (3) 

place,  194 7h 

policyholders'   nomination,    1947e 

proxies,  192S,  1956  (3),  1760.  1760m 


259 

Elections — continued. 

report  of,  annual,  1954    (21) 

salaries,   1947r 

separate  ballot,  life  companies,  1947f 

stock  corporations,   1760 

town  mutuals,  1928 

see  votes,  proxies 
Elevator  insurance,  authorized,   1S97    (13) 
Employes 

of  department,  salaries,  20.55,  20.73,  1968 

of  department,   gratuities  forbidden,   1955 — 25,    4549g- 
Employer's    liability    insurance 

authorized,  1897   (5),   2394—26 

policy  conditions,   1966 — 42 

see  compensation   insurance   board 
Endorsements,   standard  fire  policy,   1941x,   1941 — 61  to   1941 — '64 
Endowment  policies,  dividends,  1952b 
EnRlish  Life  Table  Nuinber  Six,  1958   (18a) 
Entry  of  building,  1946  1,  2394—52 
Estoppel 

application,   effect,    1977 — 1 

physician's  certificate,  1977 — 2 

suretyship  insurance,  1966 — 39 
Evidence 

arson  cases,  1946j   (1) 

death  of  insured  precludes,   1955o    (9) 

fire  policy,  4202t 

inspection  of  books,   4183 

life  companies,  4182a 
Examination  of  books  of  commissioner,  1972c 
Examinations  of  companies 

admission  of  foreign  companies,  1915,  1916,  1959   (24),  1968   (3)    (4) 

agency  records,  1919a   (3) 

appropriation  for,  20.55    (3) 

assistants'    expenses,    1968    (6),    (8),    1968f 

before  issue  of  license,  1897t,  1948,   1959 

commissioner  may  require  deposit,  1968   (5) 

commissioner's  duty,  1968 

consolidation,   190Sm 

creating  guaranty  surplus  fund,   1909 

deposits,  1968  (5) 

domestic  companies,   1897t 

expenses,  20,55   (3) 

foreign   companies,   commissioner's   discretion,   1959    (25) 

foreign  life  companies,   1947p,   1948 

impairment  of  capital,  1912 

foreign  mutual  benefit   societies,   1958   (16a),   1959    (24) 

insolvency,  1970m 

mutual  benefit  societies,  1958   (3b) 

mutual   benefit  societies,  foreign,   1958   (16) 

mutual  benefit  societies  may  request,   1959   (56) 

mutual  benefit  societies,  triennial,  1959   (24) 

power  of  commissioner,   1968f 

retaliatory  provisions,  1968  (5) 

statements  during,  1959   (27),  1968 

United  States  branches  foreign  companies,   1915   (7) 
Examinations  of  rating  bureaus,   1946 — 6 
Exchange  of  securities  on  deposit,  1973 
Execution,  insurance  moneys  exempt,  2982   (19) 


•     260 

Exemptions 

adjusters  licenses,  1943ni  (1),   (10) 

agents'  license  law,  1976 

personal   property  of   insurance   companies,    103S    (13) 

standard  policy,  1897    (5),  1932 

taxes,  1959   (30),  76.30 
Expense  charge 

commission  limited  to,  1950q 

interinsurers,   1915m   (6) 

limitation,  1950m 

state  life  fund,   1989m   (4,5) 

valuation,   1950    (3) 
Expense  provision   in  premium,  life  companies,   1950m 
Expenses 

commissioner   attending   convention,    1972a 

consolidation,   how   met,    1955 — 25 

examinations,  20.55,  1859   (24),  1968 

fidelity  bond,  lawful  item  of,  1966 — 33j 

fire  patrol,  1924 

life  companies,  1950m   to   1950p 

insolvency,  1970m   (4) 

legislative,  1953e 

limitation,  exception,  1901j 

mutual  benefit  societies,  1957   (11) 

state  life  fund,  limitation,  1989m   (13) 

political,   1953d 

promoting  stock  company,  limited,   1897f 

report,  life  companies,  1950n 

reinsurance,  life  companies,  1955 — 25 

violation  of  law,  1972a 
Expenses,  limitations 

agents,  life  companies,  1950q 

disability  companies  excepted,  1901j 

fidelity  bond,  1966 — 38 

life  companies,  1950m  to  1950q 

mutual   companies,    1901J 

non-participating  and   industrial   policies,   excepted,   1950t 

state  life  fund,  19S9m   (13) 
Experience  Tables  of  Mortality  referred  to  in  this  compilation: 

Actuaries  Table  of  Mortality,  1950   (Ic),   (Id),  1950c 

American    Experience    Table    of    Mortality.    1950    (Ic),     (Id),    1950c. 
1950f,  1950m,   (lb),    (2),  1952,  1955y— 1   (2),  1989m   (4),  3871m 

American  Select  Table  of  Mortality,   1950c,   1950m    (2) 

British  Friendly  Society  Table   1876  to  1880,   1950d   (3) 

British    Offices    Select    O"    Mortality   Table,    1950c 

British  Offices  Annuity  Table  1893,  1950d  (2),  1989m  (5) 

English  Life  Table  Number  Six,   1958   (18) 

Hunter's  Disability  Table,   1950   (Ig)   1950d   (3) 

McClintook's  Table  of  Mortality  Among  Annuitants,   1950d   (2) 

Metropolitan  Life   Company  Experience,   1950d   (2) 

National    Fraternal    Congress    Mortality    Table,    1958    (2),    1958    (19), 
1959    (22) 

Northampton  Table  of  Mortality.  3871m 

Standard  Industrial  Mortality  Table,   1950d,   1958   (18) 

Substandard  Industrial  Mortality  Table,  1950d 
Explosion,  standard  fire  policy,  1941x 
Explosion  Insurance 

authorized.    1897 

fire  companies  may  not  write,   1945c 
Explosives,  storing,  standard  fire  policy,  1941x 


261 


Extended  insurance,  policy  provision,   1948m   (4),  1958   (2) 
Extension  of  time 

for  filing^  annual  statements,  1971 

payment  of  premium,  rebate,  1955o 

sale  of  real  estate,   1902 
Extra  hazards,  state  life  fund,  1989m   (4) 


F 


Factories,  regulation  of,  standard  fire  policy,  1941x 
Fallen  building-,  standard  fire  policy,  1941x 
False  return 

fire  companies,   1920 

life  companies,   1953n 

statements,  4438j 

see  penalties 
Fees 

accepting  service,  foreign  companies,  1915   (2c) 

accepting  service,  mutual  companies,  1958  (17) 

actions  to  recover,  76.37 

adjuster's  license,  1943m  (2) 

affixing  commissioner's  seal,  1972 

agent's  license,  1972 

assisting  fire  marshal,  1946n 

basis  of,  76.31 

certificate  and  seal,  1972 

certified  copies,  1972 

deposits  for,  20.06,  1968   (5) 

domestic  mutuals  exempt,   76.30   (2) 

examinations,    20.55    (3) 

fire  marshal,  1946h  to  1946q 

filing  annual  statement,  1972 

filing  articles  and  amendments,   1772    (9) 

foreign  company,   1972    (1)    (f) 

interinsurers,    1915m    (11) 

investigation  of  cause  of  fire,   20.55,  19461   (1) 

joint  policies,   each  company  subject  to,   1972   (2) 

license  to  agent,  1972   (1) 

life    companies,    76.34 

mutual  benefit  societies  exempt,  1959  (30) 

non-stock  companies  exempt,   1772    (9) 

organization,  domestic,  life  companies,  1947   (3b) 

rating  bureau,  fire,  1946 — 4 

reciprocal,   76.36 

refund    of,    20.06 

reinsurance  corporations,  1914a 

reporting  fires,  1946q 

retaliatory,  1968   (5)   76.35 

state  life  fund,  19S9m   (13) 

surety  company  exempt,  when,  1966 — 33  1 

surplus  line  license,  1919m 

testimony,  1968f 

title  guaranty   (see  Sec.   1777g,   Stats.) 

valuation,  to  be  paid  into  general  fund,  20.55   (5) 

valuation,   1950a,  1959    (22n) 

verifying  reserves,  life  policies,  1948f 

see  licenses,  taxes 
Fidelity  bonds,  1966 — 33  to  1966 — 39 

form,  in  court,  3783a 


262 

Fidelity  insurance 

authorized,  1897   (7).  1966 — 33a 

certificate  or  license  required,  1966 — 33f 

corporation  to  guarantee  personal  fidelity,  1966 — 33a 

cost  of  surety  bond  lawful  item  of  expense,  1966 — 33j 

domestic    and    foreign    corporation    required    to    deposit    securities, 
1966— 33e 

domestic  corporation,  capital  and   surplus  required,   1966 — 33c 

domestic  corporation  already  operating,   subject  to   this  act,   1966 — 
33m 

foreign  corporation,  capital  and  surplus  required,  1966 — 33d 

guaranties  need  not  be  under  seal,  how  authenticated,  1966 — 33b 

limitation  of  risk,  reinsurance,  1966 — 33i 

person  and  corporation  authorized  to  make  rates  must  file  proof  of 
authority,   1966 — 33g 

persons   guaranteed   may    deposit   funds   in   bank    for    protection    of 
surety  company,  1966 — 33h 

regulations,  1966 — 33a  to  1966 — 40 

surety  corporation   to  maintain   adequate   reserves,   1966 — 33k 

surety  may  be  discharged,  1966 — 33n 

when  corporation  exempt  from  municipal  taxes  and  fees,  1966 — 33  1 

see  suretyship  insurance 
Filing 

articles,  rating  bureaus,  1946 — 5 

fraternal  certificates,  1959  (28) 

information   as  to  meetings,   workmen's  compensation,    1921 — 26 

policy  forms,  rates,   values,  life  company,  1948f 

policy  forms,  rates,   etc.,   disability   insurance   1948f 

rates,    workmen's   compensation   insurance,    1921 — 21 

rates,  liability  insurance,   1921 — 32 

schedule    of    expense    leading,    workmen's    compensation    insurance, 
1921—22 

schedules  and  forms,  rating  bureaus,  1946 — 5 
Fire  department 

chief,  deputy  of  industrial   commission,   2394 — 52 
Fire  department — continued 

equipment  and  approval,  1926 

inspection  of  buildings,  2394 — 52 

pension  fund,  1926   (4) 
Fire  department  dues 

appropriation  for  payment  of,   20.56 

commissioner  to  certify  amount  to  secretary  of  state,  1926m   (4) 

commissioner  to  certify  to  companies  list  of  towns  entitled  to,  1926m 
(2) 

commissioner  to  notify  tewns  of  amount  due  them,   1926m    (5) 

companies  to  pay,  1926m  (3) 

condition  precedent  to  obtain,  1926 

interinsurers  to  pay,  1919m   (11) 

owner  of  property  liable   for,   unauthorized   insurance,    1926    (5) 

reciprocal  provisions,  76.36 

retaliatory  provisions,  76.35 

towns  entitled  to,  1926 

unauthorized  insurance,  1926   (5) 
Fire  drills  in  schools,  40.30   (6) 
Fire  insurance  adjusters 

authorized,  1943m   (1) 

first  adjustment  not  violation,  1943m   (4) 

license  for,  1943m  (2) 

licensed  agents  to  be,  1943m   (2) 

license   revocable   J943m    (3) 


263 


Fire   insurance   adjusters — continued, 
notice  of  adjustment,   1943m   (5) 
penalty,  1943m  (11) 
town  mutuals  exempt,   1943m   (10) 

Fire  insurance  companies 

abandonment,  standard  fire  policy,  1941x 

added  clauses,  standard  fire  policy,  1941x 

adjustments,  1943m 

agents,   residents,   1919a 

amount  of  recovery,  coinsurance,  1900f,  1943a 

amount  of  recovery,  valued  policy,   1943 

annual  statement,  1920 

assets,   misrepresentation,   1946a 

authorized,  1897   (1) 

automobiles,   insurance   of,   1897a,   1931    (2m) 

appraisal,  standard  fire  policy,   1941x 

blue  sky  law,  1897f 

board  of  fire  underwriters,  1922  to  1925 

by-laws,   1897d,  1941j   (2) 

commissioner  to   establish   rates,   1946 — 11 

cancellation,  standard  fire  policy,  1941x,   1946d 

capital,  misrepresentation,  1946b 

capital  required,   1897g 

chattel  mortgage,  standard  fire  policy,  1941x 

civil  actions,  joinder,  2609a 

classification  of  risks,  1897 

coinsurance,  1900f,  1943a 

commencing  business,   conditions,   1897s,    1897t 

company's  options,  standard  fire  policy,  1941x 

consolidation,  1908m 

contracts  held  to  be  made  within  state,  1941 — 64m 

coverage  permitted,  1897,  1945c 

deviation  from  schedule  rates,  1946 — 9 

directors,  classification,  1945f 

director's  liability,  18971,  1945h 

discrimination  in  rates,  1946 — 17 

discrimination  in  rates,  how  removed,   1946 — 10 

dissolution,  1763,   1764,   1789 

dividends,  1910 

endorsements,  standard  fire  policy,  1941 — 63  to  1941 — 64 

examinations,   1897t,   1912,   1915,  1916,  1948,   1968 

explosion,   cannot  write,   1945c 

fall  of  building,  standard  fire  policy,  1941x 

fees  for  reporting  fires,  1946q 

fees,   license,   1972 

fire  marshal,  20.55,  1946h  to  1946q 

fire  patrol,  1923  to  1925 

form  of  policy,   standard  fire  policy,  1941x 

form  for  notice  of  loss  to  be  attached  to  policy,   19461   (5) 

fraud,  burning  property,  4405 

fraud,  advertisements,  1946q 

fraud,  standard  fire  policy,  1941x 

guaranty  surplus  fund,   1909 

hazards  not  covered,  standard  fire  policy,  1941x,  1945c 

increase   of  hazard,   standard   fire  policy,    1941x 

increase  of  risk,  riders  to  be  filed,   1946 — 15 

insured  may  bear  first  part  of  loss,  1900f 

investments,   1902,  1903 

joinder  as  defendants,  2609a 

joint  policies,  standard  fire  policy,   1941 — 64    (5) 

riability  of  directors,  18971  (2),  1945h 


264 


Fire  insurance  companies — continued 
license,  1916,  1917,  1976 
license  fees,  1972 

license  to  agents,   unauthorized  company,   1919m 
lien  on  stock  profits,  1904 

lightning-  clause,   standard  fire  policy,    1941 — 62 
loss,  amount  recoverable,  coinsurance,   1900f,    1943a 
loss,  amount  recoverable,  valued  policy,  1943 
loss,  requirements,   standard   fire  policy,   1941x 
loss,  when  payable,   standard  fire  policy,  1941x 
member  of  rating  bureau,  1946 — 1 
misrepresentation,   assets,   1946a 
misrepresentation,  capital,  1946b 
misrepresentation,   risks,    1946c 
misrepresentation,    penalty,    1946e 
name,  1774,  1897b   (2),  1942 
noon  defined,  standard  fire  policy,  1941x 
note  in  payment  of  premium,  1944,  1945 
notice  ©f  loss,  1941x,  19461   (5) 
organization,   1772,   1773,   1896 
other  insurance,  standard  fire  policy,   1941x 
penalty  for  failure  to  report  reinsurance,  1919d 
premium  notes,  1944,  1945 
prohibited  policy  provisions,   1900 
policy  to   show  kind  of   company,    1942 
policy  void   in  proportion  to  rebate,   1955o    (4) 
policy  void,  standard  fire  policy,  1941x 
promotion,  limitations,  1897f 
pro  rata  liability,  standard  fire  policy,  1941x 
rate-making,  1946 — 1  to  1946 — 18 
rate-making,  violation,  1946 — 17 
rates,  complaints,   1946 — 11 
rates  to  be  reasonable,  1946 — 17 
receivers,  statement  by,   1921 
reciprocal  provisions,  76.36 
reinsurance,  1905,  1914a,  1918,  1919m 
reinsurance  companies,  1914a 
reinsurance  companies,  foreign,  1914a 
report,  agents'  commissions,   1977 — 4 
report,  concerning  reinsurance,  1919d 
reports,  contents,   1920 
reports  to  be  made  annually,  1920 
reserve   liability,   1899 
resident  agent  law,  1919a 
retaliatory  provisions,   76.35 
risks,   limitation,   1945c 

risks,  maximum  single,  reinsurance  deducted,  1898 
risks,  minimum  in  force,  1898d 
risks,  misrepresentations,  1946c 
service  of  process,   1915,   1915m,   1919,    2637 
stamping  office,   1946 — 13 

standard  fire  policy,   1941x,   1941 — 61   to  1941 — 65 
standard   policy  exclusive,  exceptions,   1941 — 64,   1941 — 65 
stock  dividend,  1908a 
stock.  Impairment,  1912,  1913 
stock  Increase,  1908,  1908a 
subrogation,  standard  fire  policy,  1941x 
suit,  standard  fire  policy,  1941x 
surplus  and  special  reserve,  1909  to  1914 
surplus  required,   1897g  (2) 
survey  of  risks,  1946 — 7 


265 


Fire  insurance  companies — continued 

taxes,  76.30  to  76.37 

temporary  rates,   194C — 14 

to  be   licensed,   1917 

town  mutuals,   1927  to  1941a — 4 

unauthorized  insurance,   1919m,   1926 

unauthorized  policies  void,  1941 — 64m 

uninsurable  property,  1941x 

valued  policy  law,  1943 

violation  of  law,   1919e,  1955o — 5 

waiver,  standard  fire  policy,  1941x 

warranty,  1977 — 1 
Fire  insurance  companies — foreign 

adjusters,  1943m 

admission,    1915 

assessments,  1945b,  19451 

authority   limited,    1916    (5) 

capital  and  deposit,   1915   (4),  1917 

examination,  1915,   1916,   1948,  1968 

fees,  1972   (1)    (f) 

filing  charter,  1915  (3) 

impairment,  1915   (2),  1917 

interinsurers,    1919m 

license  fee,   1915    (11),  1917,   1972 

license,   expiration,   1916,   1976 

Lloyds,   1915    (Ic) 

member  of  rating  bureau,  1946 — 1 

mutuals,   1915   (lb) 

nonpayment  of  judgment,  1919e.  1974 

parity  with  domestic,  1916  (4) 

penalty,  1919e,  1955o — 5 

reinsurance   company,   19r4g 

removal  of  cause,  1915   (2) 

report,  1920,  1971 

resident   agent  law,   1919a 

revocation  of  license,  1916  (3),  1917 

risks,   1897,   1945c 

service  of  process,  1915   (2),  1915m,  1919,  2637 

standard  policy,   1941x,  1941—61  to  1941—65 

surplus  lines,  1919in 

taxes,  76.30 

unauthorized  insurance,  penalty,  1919f 

withdrawal  of  securities,  1918 
Fire  insurance  companies — mutual 

actions  against,  1945b,   2609a 

action  by  receiver,  assessments,  1945b 

adjusters,  1943m 

admission   of  foreign  mutual,   1915    (lb) 

agreements,  disposition  of  surplus,  1897k 

amendment  of  articles,  1774,   1774n,  lS96m,   1897c 

annual  report,  1920,  1971 

applications  by  unauthorized  insurers,   4575s 

applications  to  be  filed,  1897e 

application  part  of  policy,  1900 

articles,  contents,  1772,  1897c 

articles,   validated,   1896m    (3) 

assessments,  action  by  receiver,  foreign,  1945b 

assessments,  certificate  of  secretary,  evidence,  4182 

assessments,  foreign  company,  filing  statement  of,  19451 

authorized,  1897a 

automobile  insurance  authorized,  1897a  (5) 


266 

Fire   insurance  companies — mutual — continued 

bank    deposit    insurance,   maximum   risk,    1898    (3) 

borrowing-  money,  surplus  notes,   lS97ff   (4) 

burning-  property  to  injure  insurer,  fraud,  4405 

by-la-ws,   filing,    penalties,    1897d 

cancellation,    1941x,    1946d 

cannot   reorganize   into   stock    company,    1897k 

classification,  1897 

classification  of  risks,   1901n 

conditions   before   commencing  business,    1897s,    1897t 

conditions  of  transacting  business,  18971 

coinsurance,   1900f,   1943a 

commissioner   to   establish  rates,    1946 — 11 

corporations  may  be  members,  1897g  (4) 

domestic,   exempt  from   tax,   76.30    (2) 

directors,    classification,    1945f 

directors,  liability,  18971,  1945h 

dissolution,  1763,  1764,   1789 

dissolution,  disposition  of  surplus,  1897k 

dividends  limited   on  dissolution,   1897k    (2) 

examination,   1897t 

expense  limitation,    1901j 

false  statements,  penalty,   4438em,  4438j 

fees,  exempt,  76.30   (2) 

fire  department  dues,   1926 

foreign,   admission,   1915    (lb) 

fraud   on   company,   4405 

guaranty  surplus  fund,   1909 

hail  insurance  to  be  in  separate  policy,  1897a  (4) 

insured  may  bear  first  part  of  loss,   1900f 

insured  preferred  claimant  for  unearned  premium,   1941 — 63s 

interinsurers,    1915m 

investments,  1902,  1903,   1911 

joinder   in    actions,    2609a 

joint   policies,    1941 — 64    (5) 

liability   of  directors,    lS97i,   1945h 

liability  of  incorporators,   18971    (2) 

liability  to  members  may  be  limited,  1897c 

license,    1948,    1976 

lightning  clause,   standard   policy,    1941 — 62 

limitation   of  dividends,   1897k    (2) 

limitation  of  expenses,  1901j 

limitation  of  time  for  beginning  action,  1900 

Lloyds,  1915   (Ic) 

loss,  amount  of  recovery,   1900f,   1943,   1943c 

loss,  notice,  proof,  duties,  standard  policy,  1941x 

loss,  payment  of,  report  of  adjustments,   1943m    (6) 

misrepresentation,  1946a,  1946b,  1946c 

misrepresentation,  penalty,   1946e 

member   of   rate-making  bureau,    1946 — 1 

membership  during  organization,   1897e    (2) 

multiple  lines,  1897a   (3) 

mutual   provisions,   on   standard   policy,    1941 — 64 

name,  false  use  of,   1946em 

name  not  to  be  similar  to  any  other,   1772    (2),    1897b    (2) 

name   on   face   of  policy,   1942 

name,  when  liability  limited,   1897b 

nonpayment  of  judgment,   penalty.   1919e,    1974 

notice  of  flro  loss,  form  to  be  attached  to  policy  19461  (5) 

organization,  1772,   1773,   1896 

penalty,  failing  to  file  copy  of  by-laws,   1897d 


267 

Fire    insurance    companies — mutual — continued 

penalty  for  violating  rate-making  law,  1946 — 17 

penalty,   rebating,    1955o    (5) 

penalty,  violating  law,  1919e,  1955o — 5 

policies,  directors  liable,  when,   18971 

policies  in  excess  of  maximum,   directors  liable,   18971 

policy  provisions,   1897c,   1900,   1941x,  1941 — 61  to   1941 — 65 

policy  to  show  kind  of  company,  1942 

premium,  extension  of  time  for  payment,  rebate,  1955o 

premium,  not  to  be  discriminatory,   1946 — 8 

premium  notes,  1944 

prohibited  policy  provisions,  1900 

rebating,    1955o 

receivers,    report,    1921 

reinsurance,    1898    (4),    1905 

repeal  of  class  mutual  laws,  1941g 

report,     annual,     1920 

report  of  adjustments,   form,   1943m    (5) 

report    of    reinsurance,    1919d 

resident  agent  law,  not  applicable,   1919a 

riders   for   extra  hazards   to   be   filed,   1946 — 15 

risks,    limitation,    1897c 

risks,   may   assume,    1945c 

risks,   maximum   single,   1898 

risks,    minimum    outstanding,    1898d 

separate  policies,  1897a 

standard    policy,    1941x,    1941—61    to    1941—65 

standard  fire  policy  to  be  used,  1941 — 65 

surplus,    disposition    of,    1897k 

surplus  required — non-accessable   policy,   1897c   (2) 

surplus    safeguarded,    1897k 

term    of    policy,    1901n 

town   mutuals,    1927   to    1941n 

unauthorized   insurance,   penalty,    1919f 

unauthorized    insurer    taking    applications,    4575s 

taxes,   exemption,    76.30 

valued  policy,   1943 

see   life   insurance    companies,    mutual 

see  mutual   benefit   societies 
Fire  marshal,  see  state  fire  marshal 
Fire  marshal   tax 
Fire   patrols,    1922   to   i925 
Firemen's   pension   fund,   benefit,    1926    (4) 
Fire  policies 

adjustments,    1943n» 

cancellation,    1941x,   1946d 

coinsurance,    1900f,    1943a 

concealing  identity  of  insurer,  1946em 

contract   within   state,    1941 — 64m 

floater  policy  not  standard,   1897a   (5) 

form,    commissioner   to    prepare,    1941x 

insured  may  bear  first  part  of  loss,  1900f 

knowledge   of   agent,   knowledge   of   company,    1977 — 3 

lightning  clause,   1941 — 62 

loss,   amount  of  recovery,   1900f,   1943,   1943a 

mutual    provisions,    1941 — 64 

notice  of  loss  to  be  attached,   19461   (5) 

other   matter   permitted,   1941 — 64 

prohibited   provisions,    1900 

reduced   rate,   policy   to   show,    ISOOf,    1943a 

standard   form,    1941x,    1941—61    to    1941—65 


268 

Fire  policies — continued. 

standard    form    exclusive,    1941 — 64 

time   for  beginning  action  on,   1900 

to  show  kind  of  company,  1942 

town   mutuals,   approval   of,    1932 

underwriters    agencies,    1946em 

valued    policy    law,    1943 

violation,   1941 — 65 
Fire    preventive    association,    20.56 
Fires 

fees  for  reporting,   1946q 

investigations   by   fire   marshal,    1946j 

notice  of  loss  by  property  owner,  19461   (5) 

set  to   injure   insurer,   4405 
Floater  policies,  1897a  (5) 
Foreign    corporations 

see   insurance   companies,   foreign 
Foreign   life  company 

defined,    1946x 

see  life  insurance   companies,   foreign 
Forfeitures 

actions   to   collect,    3300 

agents'    licenses,    1976    (4) 

collection    of,    3299,    3300 

nonpayment   of   judgment,    1974 

of   charters,    1941 — 65,    1943a,    1955o    (6) 

failing  to  file  by-laws,  1897d 

recovery  by  commissioner,  1972a 

writing  policies  after  revocation,  1970o 

see  revocation  of  license 
Form   of  license,    76.37 

P'ractional  votes  not  recognized  by  life   company,    1947g   (2) 
Fraternal    society 

defined,    1956 

see  mutual  benefit  societies 
Fraud 

absconding  to  procure  life  insurance,   4438e 

assets,  false  advertisement,   1946a 

burning  property  to   injure  insurer,   4405 

circulars,    misrepresentation,    1946f 

false    affidavit    4429 

in  becoming  member  of  mutual  company,  4575e 

life    policy,   4438e 

misrepresentation,   penalty,    1946a  to   1946f 

obtaining  membership,    4575e 

penalty,    194Ce 

risks,    misrepresentation,    1946c 

standard  fire  policy,   1941x 

warranty,    1977 — 1 
Funds 

see    capital,    surplus,    investments 
Future  estates 

commissioner  to  value,  72.15,  3871m 


269 

G 

Gain   and  loss  exhibit  life  report,   1953n 
Government,  mutual  benefit  societies,   1956   (3) 
Governor 

appointment    of    commissioner,    1966y 

approval,   bond  of   commissioner,    1967 

commissioner's   report   to,    contents,    1972 

member  of   board   to   hear   petition   in   reinsurance,    1955 — 24 

to  examine  commissioner's  books,  1972c 
Gratuities,   prohibited,    1955—25,    1968,    4549g 
Guarantee    of   bank    deposits,    1898 
Guaranty   surplus   fund 

commissioner's    duty,    1909 

dividends,    1910 

fire   company,   1909   to   1912 

how    created,    1909 

investment    of,    1911 

scope  of  law,  1914 


Hail  insurance 

authorized,   1897 

domestic  exempt   from   rating  law,   1946 — 18 
fire  companies  may  write,   1945c 
separate   policies,    1897a   (4) 
town   mutuals   may  write,    1931    (3) 
Hazards   not   covered,   standard   fire   policy,    1941x,    1945c 
Health,   accident,   and  health   and  accident   insurance 
accident,    see    exceptions    from    coverage 
accident,   insurance,   see   authorized,   defined 
action,   see   suit 

ag-e   limits   in    policy,    1960 — 4    (5) 
amount   of   indemnity,    see    indemnities,    classification    of;    indemnity 

promised    in    policy 
amount  of  insurance,   see   indemnity  promised   in   policy 
application 

alteration    of,    1960 — 8 

statements  in,  when  warranties,  1977 — 1 
authorized,    1897 — 4 

autopsy,    right   of    insurer    to    make,    1960 — 3    (8) 
beneficiary,    see    indemnity,   to   whom    payable 

rights   of,    1960—3    (8) 
benefits,  see  indemnities,  classification  of;   indemnity 
bodily   injury,   see   indemnities,   classification   of 
by  laws,  see  provisions,  prohibited 
cancellation,    see   occupation,    change    of 

by   insurer,   1960 — 4    (1) 
changes    in   contract 

by   agent,   invalid,   1960 — 3    (2) 

statements   in   application   not   in   policy   without   effect,   1960—3 

statements   of   applicant  in   policy   ineffective   unless   false,   etc.. 
1977 — 1 

valid   when   approved   by   executive    officer,    1960 — 3    (2) 
change  of  occupation,   effect  of,   see  occupation 
contract,   policy   and   attached   papers   entire,    1960 — 3    (1) 
default  in  payment  of  premium,  effect  of,  1960 — 3  (3) 
defined,   1960—1 
examination   of   person   during   pendency   of   claim,    1960—3    (?) 


270 

Health,    accident,    and   health    and    accident    insurance — continued 
exception   from   coverage 

how   printed,    1960 — 2    (6) 

reducing   indemnity,    1960 — 2    (6) 
excess    indemnity 

for  loss  of  time,   1960 — 4    (4B) 

for  loss  other  than  loss  of  time,  1960 — 4   (4A) 

other    insurer,    1960 — 4    (2) 

same    insurer,    1960 — 4    (4) 
indemnities,    classification   of 

loss   of    life,    1960 — 3    (11) 

other  than  loss  of  time,  1960 — 4   (4C),  1960 — 3   (9) 

time    only,    1960 — 4    (4B),    1960 — 3    (9) 

unclassified,    1960 — 4    (4A) 
indemnity 

limitations   on,    for   other    insurance 
other   insurer,    1960 — 4    (2) 
same    insurer,    1960 — 4    (4) 

not   payable   to   beneficiary,    1960 — 3    (IIB) 

payable    to    beneficiary,    1960 — 3    (llA) 

promised  in  policy,   not  to  be  limited  except  by   optional   stand- 
ard provision  17,   1960 — 4    (2) 

to  whom  payable 

beneficiary,  1960 — 3   (llA) 
insured,   1960 — 3    (IIB) 

when   payable 

for   loss   of   life,    1960 — 3    (9) 
for   loss   of   tim«,    1960 — 3    (10) 
for  loss  other  than  of  time,  1960 — 3   (9) 
life  company  may  write,   1947a 
limitation 

on  indemnity  promised,  see  indemnity 

on  time  of  notice,  see  time  of  notice 

on  time   of  suit,  see  suit 
losses,  classification  of,  see  indemnities 

classification    of,    1960 — 4    (4) 
medical   benefits,   see   indemnities,   classification   of 
notice,  see  sufficiency  of  notice,  time  of  notice 
occupation,   change   of 
cancellation,    1960 — 3    (12) 

less   hazardous,    cancellation,    1960 — 3    (12) 

more  hazardous,  prorating,  1960 — 3  (1) 
optional  provisions,  see  provisions,  optional 
other  insurance,  see  indemnity,  limitations  on 

prorating   for,    1960 — 4    (2) 
overinsurance,    see    excess   indemnity 
post  mortem,  see  autopsy 

premium   in    policy,   see    policy   requirements 
premium,   see   rates 

default  in  payment,   see   default 

unpaid  deducted  from   claim,   1960 — 4    (3) 
policy    form,    see    policy    requirements,    provisions,    optional 

prohibited,    standard;    standard    provisions    law 
policy    form 

classification  of  risks  for,  filed,   1960 — 1 

commissioner    may    shorten    time    of    filing,    1960 — 1 

filed  with   commissioner  for   30   days,   1960 — 1 

rates   for,    filed,    1960 — 1 

size  of  type,   1960 — 2    (4) 

unlawful   to   issue,    if   notice   of   unlawfulness   given,    19G0 — 1 


271 

Health,    accident,    and   health    and    accident   insurance — continued 
policy   requirements,    see    provisions,    optional    standard 
consideration   to   be    expressed,    1960 — 2    (1) 
description   on   face    and   filing-  back,    1960 — 1 
exceptions  printed   as   prominently   as  benefits,    1960 — 2    (6) 
exception   reducing-   benefits — bold    face   type    and   greater   prom- 
inence   than    text,    1960 — 2    (6) 
insure  only  one  person,   1960 — 2    (3) 
printed   portion   ten-point   type,   1960 — 2    (4) 
reduction   of   indemnity  by   exceptions,   1960 — 2    (6) 
time  for  notice  printed  on  face,  1966 — 49a 
time  takes  effect  and  terminates,  to  be  stated,   1960 — 2   (2) 
type,    size   of,    1960 — 2    (4) 
proof  forms 

failure    to    furnish,    1960—3    (6) 
to    be   furnished,    1960—3    (6) 
prorating,   see  indemnity;  occupation,  change  of 
provisions    of    policy,    see    provisions,    optional,    standard 
provisions,    optional    standard,    1960 — 4 

(16)  cancellation    by   insurer 

(17)  effect   of   other   insurance 

(IS)    premium    deducted    on    settlement    of    claim 

(19)  other    insurance,    same    insurer 

(20)  age  limits  in  policy 

provisions     prohibited,     see     also     policy     requirements;     provisions, 
optional,  standard,  standard  provisions  la-w 
charter,    constitution,     by-la-ws,    relating-    to,    unless    in    policy. 

1960—5 
c«5ntradictory   of   optional    provisions,    1960 — 5 
contradictory   of   standard  provisions,   1960 — 5 
required   by    foreign    la-w-    for    foreign    insurers,    1960 — 10 
required  by  foreign   law   of   domestic  insurers,   1960 — 10 
substitutes   for   standard   or   optional    standard   provisions, 

provisions    standard,    see    also    policy    forms;    policy    requirements; 
provisions,   optional,   standard   provisions   la-w 

provisions,   standard,   1960 — 3: 

(1)  effect  of  change  of  occupation  on   indemnity 

(2)  chang-es   in   contract 

(3)  reinstatement    after    lapse 

(4)  time   of  notice   of  claim 

(5)  sufficiency  of  notice 

(6)  forms  for  proof  of   loss   to  be   furnished 

(7)  time  -when   proof  to  be   given 

(8)  examination   of  person  of  insured 

(9)  -when    benefits    to    be    paid 

(10)  periodical    payments   for   loss   of    time 

(11)  to   -whom    indemnity    payable 

(12)  cancellation   by   change   to' less   hazardous   occupation 

(13)  rights    of    beneficiary 

(14)  time   limit   on    suit 

(15)  time    limit    of   notice    of    claim 
provisions    standard 

change  of  occupation,  no  reduction  of  indemnity,  1960 — 3  (lA) 
forms  -without,  valid  but  construed  under  act,   1960    (9) 
insurer    to    be    properly    designated    in,    1960 — 3 

rates 

for  policy  to  be  filed,  1960 — 1 

statement  of,   applies  if  not  in  policy,   1960—5 

reduction 

of  coverage,   see   exceptions 
of  indemnity,   see   indemnity 


Health,    accident,    and   health    and    accident    insurance — continued 
reinstatement    after    lapse 

accident   policy,    1960 — 3    (3A) 
health   policy,    1960 — 3    (3B) 
accident   and  health  policy,   1960 — 3    (3C) 
representations    in    application,    warranties    when,    1977 — 1    (1) 
risks 

classifications  of applies   if  not  in  policy,   1960 — 5 

classification  of,  for  policy,  to  be  filed,  1960 — 1 
sickness,  see  exceptions  from  coverage 
standard    provisions    law,    1960 
exceptions 

blanket    policy,    association    of    employes    in    one    occupation, 

1960—12     (1) 
fraternal  benefit  societies,   1960 — 12    (3) 
life     and     endowment     contracts     or     contracts     supplemental 

thereto.    1960-1-12    (2) 
liability   of  workmen's   compensation   policies,    1960 — 12    (1) 
policies  of   domestic   insurers   until   July   1,    1915,    1960 — 15 
railroad   ticket   policies,    1960 — 12    (4) 
violation,    penalty   for,    1960 — 13 
sufflciency  of  notice 

deposit    in    postoffice,    registered,    prepaid,    1966 — 49a 

to   insurer  at ,    1960 — 3    (5) 

to  any  agent  of  insurer,  1960 — 3  (5A) 

to   agent of    insurer    at 1900 — 3    (5B) 

suit,  time  limit,  1960 — 3   (14) 

surgical    benefits,    see    indemnities,    classification    of 

time 

of  notice   of   claim 

accident    policy,    1960 — 3    (4A) 
health   policy,    1960—3    (4B) 
accident  and  health   policy,   1960 — 3    (4C) 
when    proof   to    be    furnished 
disability    loss,    1960 — 3    (7B) 
disability  and   other  loss,   1960 — 3    (7C) 
other    than    disability,    1960 — 3     (7A) 
waiver  of  rights,  receipt  of  notice,  furnishing  blanks,  investigation, 

not   a,    1960 — 7 
warranties,   statements    in    applications,    when,    1977 — 1    (2) 
warranty,  in  policy,  when  effective,  1977 — 1    (2) 
Health    insurance 

see  health,  accident,  and  health  and  accident  insurance 

Hearings 

compensation    insurance    board,    1921 — 9 

reinsurance,    1955 — 23 

examinations,   1959    (27),   1968 

revocation   of  license,    1959    (28) 
Home   office 

first   year   expense,    life    companies,    1950m 

value    limited,    1902 

value   limited,   mutual   benefit   society,    1957    (10) 
Hunter's  Disability  Table,   1950    (Ig),   1950d    (3) 
Husband,   married  woman  may   insure,   2347 
Husband,  may  insure  for  benefit  of  wife,   2347 


Illustration  of  net  cost  of  life   policies,   1946f  ^ 

Impairment  of  capital 

casualty   companies,   1966 — 46 

fire   companies,    1912,   1913,   1915    (2) 

foreign    companies,    1915    (2),    1917 

how   made   good,    1913,    1966 — 46,    1969 

life    companies,    1949 

losses    incurred    during,    1966 — 46 
Incorporation   of  companies,   see   insurance  companies 
Incorporators,  number  required,  1896,  1914a,  1927 
Increase   of   capital,    1908,    190Sa,    1908m 
Increase   of  hazard,    standard   fire   policy,    1941x 
Increase   of   risk,   material    fact,   warranty,    1977 — 1 
Independent  ticket,  life  company,  election,   1947d 
Indorsements 

health,  accident,  and  health  and  accident  company,   1960 

standard  fire  policy,   1941 — 63  to   1941 — 64m 
Industrial    commission 

appropriation    for,    20.57 

chiefs  of  fire  departments  deputies  of,   2394 — 71 

review   of    dangerous   premises,    2394 — 52 
Industrial    policies,    valuation,    1950d 
Inheritance    tax,    3871m,    72.15 
Injunction 

insolvency,    1970m,    3218,    3219 

issue    by   supreme    court,    3219 
Injury,    time   limit   for    notice,    1966 — 49a 

see   health   and   accident   insurance 
Inland    transportation    insurance,    1897 
Insolvency 

application   of   law,   promoters,    1970m    (7) 

commissioner   to  have   power   of   commissioner    of   banking,    1970m 

commissioner    to    report,    1966 — 34    (5)    1970m    (6) 

commissioner's  petition  to  court,  1970m 

commissioner    to    notify    court,    1966 — 34    (5) 

injunction,    3218,    3219,    1970m    (2) 

liquidation,    commissioner's   title    to    property,    1970m    (3) 

order  to  show  cause,  1970m   (2) 

regulations,    1970m    (5) 

special  employes,  expenses,  1970m   (4) 

what   constitutes,    1763 
Inspection   of   books,    evidence,    4183 
Inspection   of  risks,   report,   life  company,    1950n 
Inspections 

fire    departments    to    make,    2394 — 52 

fire   risks,    1946 — 1    to    1946 — 18 

industrial   commission   to   supervise,   2394 — 71 
Inspectors  of  election,  life   companies,   1947e 
Insurance   by   married   woman,    2347,    2347b 
Insurance  commissioner,   see   commissioner  of  insurance 
Insurance    companies 

actions  against  after  expiration  of  license,  1970o 

actions   against   for   policyholders,   1970o 

agent's    commissions,    schedule    of    to    be    filed,    1977 — 4 

agent's    licenses,    1976 

articles,   amendments,   see  articles 

by-laws,  1897d 

by-laws,  compulsory,  1897d 

18 


274 

uirancf   <'()iiiiiaiiit'.s — continufd. 
cancellation   of   policy,   1946cl,    1941x,   1958,    1960 — 3    (12) 
capital,    impairment,    1912,    1917 
capital,    investment,    1902,    1903,    1951 
capital,  restoration,  1913,  19G9 
change  of  name,  1774 

classification  of  risks,   1897,    1901m,   1946 — 16 
compliance   with  law,    1978 
consolidation,   190Sm,   1955 — 21   to   1955 — 26 
continuation   after   dissolution,    1764 
defined,    lS95m,   1978 
definitions,   1895m,   1946x,   1966 — 47a 
deposit  for  fees,  20.06 
deposit,  foreign  company,  1915,   1973 
directors'   liability,    18971,    1945h 
discrimination,   1955o 
dividends,  see  general  heading 
examinations,  1897t,  1908,  1908a.  190Sm.  1909,   1912,   1913,   1915,   1915m, 

1916,  1958   (16),  1959   (24,  25,  26,  27),  1968 
exempt  from  personal  property  tax,   1038   (13) 
expense  limitations,  1901j,  1950   (3),  1950m,  1950n,  1950o,  1950p,  1950q, 

1950r,  1957   (11) 
false  statement,  4438j 
false  use  of  name,   1946em 
fees  and  taxes,   1772   (9),  1972,  76.30  to  76.37 
injunctions  on  insolvency,  1970m,  3218,  3219 
insolvency,  1763,  1970m,  1970n 
investments,  1902,  1903,  1911,  1951 
incorporators'  liability,   18971 
increase  of  capital,   1908,  1908a,  1908m 
issuing  policy  after  judgment,  1974 
joinder   as  defendants,   2609a 
license  before   transacting  business,   1948 

see  agents'  licenses 

see  company  licenses 
license  fee,  1917,  1972 
lien  upon  stock  profits,  1904 

liquidation,    power    of    commissioner,    1970m    (3) 
loans,  how  made,   1902,   1903 

maximum  single  risk,  1898.  1898   (3),  1915m,   1958   (6) 
minimum  risks  outstanding,  1898d 
must  comply  with  law,  1978 
nonpayment  of  judgment,  1974 
notice  of  action  against,  3219m 
order  to  show  cause,  receiver,   1970m 
organization  of,  1772,  1773,  1896,  1897,   1927,   1947,   1958,  1966 — 34, 

2394—26 
policies  to  be  separate,  1897a  (3) 
policy  provisions,  see  policies 
proceedings  against,  3219m 
promotion,  blue  sky  law,  1897f 
purposes,  classification,   1897 
rebating,  1955o 

reduction  of  capital,  1966 — 46,  1970 
refusing  department  examination,   1916   (3) 
reinsurance,  1905,  1914a,  1955—21  to  1955—26 
reinsurance  deducted  in  determining  maximum  risk.  1898 
resident  agent  law,  1919a 
restoration  of  capital,  1913,   1969 
retirement,   1905,   1918 


2^0 

Insurance   companies — continued. 

revocation 

see  agent's  license — revocation 
see  company  license — revocation 

risks,  maximum  single,  189S,  1898  (3),  1915m,  1958   (6) 

risks,  minimum   outstanding-,   1898d 

service  of  process,  1915   (2),  1915m,  1919,  1947  (5)   1958   (17)   2637 

service  same  as  on  natural  person,  2637 

stock  dividends,  1908a 

see  dividends,  general  heading 

stock  or  mutual  plan,  1897a 

surplus  fund,  1897s,  1909 

surplus  notes,  1897g  (4) 

taxes,  76.30  to  76.37 

temporary  control,   1773 

trading  prohibited,  investments,   1902 

valuation,  see  life  insurance 

warranty,   1977 — 1 

warranty,   standard  policy,  1941x 

who  may  organize,  1896 
Insurance  companies  authorized 

assessment  life,  reorganization  into  legal  reserve  company,  1955y — 2 

classification  of,  1897 

general  corporation  provisions,  1772,  1773,  1896 

interinsurers,  1915m 

life    insurance,    stock    or    mutual,    1947 

Lloyd's   association,    1915    (Ic) 

mutual   benefit   societies    (fraternal),    1958 

reinsurance    companies,    1914a 

suretyship  companies,   1966 — 34 

state  insurance  for  public  buildings,  1978a 

state  life  fund,  1989m 

stock  or  mutual  plan,  1897a 

town  mutuals,  1927 

town  mutual   insurance,  1941a — 1 

workmen's  compensation,   2394 — 26 
Insurance  commissioner,   see  commissioner   of  insurance 
Insurance  department,  see  commissioner  of  insurance 
Insurance  laws,  see  penalties 

Insurance  rates,  regulation  of,  fire,  1946 — 1  to  1946 — 18 
Insurance  rates,  regulation  of,  compensation  insurance,  1921 — 1   to   1921 

— 29 
Insurance  rates,  liability,  1921—30  to  1921—36 
Insured 

death  of  precludes  evidence,  1955o  (9) 

defined,  1946x 

dividend,  statement  to,  life  company,  1952c 

may  bear  first  part  of  fire  loss,  1900f 

liable  for  fire  department  dues,  1926 

mutual  benefit  society  money  due  from,  exempt,  1952d 

preferred   claimant  for  unearned  premium.   1941 — 63s 

unauthorized   insurance,   1919m 
Interest  assumption,  mutual  benefit  societies,  1959   (22) 

state  life  fund,  1989m  (4,  5) 
Interest  basis 

annuities,  1950d 

disability  policies,   1950d 

industrial  insurance,  1950d 

life  policies,  1950c 


276 

Interest 

change  in,   standard  fire  policy,  1941x 

maximum,  assessment  life  policies,   1955y — 1 

on  deferred  dividends,  diversion   prohibited,   1952g- 

rate,  deferred  dividends,  life  companies,  1952c 

on  policy  loans,  report,  1954   (30) 

savings,  report  of,  life  company,  1954   (30) 

state  insurance  fund  to  pay  on  indebtedness,  1978d 

state  insurance  fund  to  receive  on  balances,  1978d 
Interinsurers,  1915m 

exempt  from  law,  1915m  (15) 

not  to  write  life  policies,  1915m 
Investments 

generally,  1902,  1903,  1911,  1951 

guaranty  surplus  fund,  1911 

life  companies,  1951 

limitations,  1902,  1903 

mutual  benefit  societies,  58.06,  1957   (10) 

single,  limited,  1903 

state  fire  fund,  1978d  (7) 

state  life  fund,  1989m  (2) 

town  mutuals,  1931   (5) 

trading  powers,  1902 

J 
Joinder  as  defendants,  2609a 
Joint  policies,  fees,  1972a' 

Joint  policies,  standard  fire  policy,  1941 — 64   (5) 
Judgment 

for  forfeiture,  3299 

nonpayment  of,  1919e,  1974 

payment  of,  1919e 
Judicial  review 

commissioner's   orders,   rates,    1946 — 11,   1970p 
Juvenile  insurance,  1858-18  (a) 


L 
liapae 

assessment  life,   1955y — 1 

life  company,  report,  1954   (31) 

mutual  benefit  societies,  1958   (2) 
Laws,  exemptions  from 

adjuster's  license,   town   mutual,   1943m    (10) 

agents'  licenses,  1919a  (6),  1919f 

fees  and  taxes,  domestic  mutuals,  76.30 

fees  and  taxes,  mutual  benefit  societies,  1959  (30) 

floater  policies,  1897a  (5) 

fraternal  societies  1956  (9) 

Interinsurers,  1915m   (15) 

life  fund,  1989m   (17) 

Lloyds,   1915    (d) 

town  mutuals,  1932 
Legislative  expenditures,  1953e 
Liability 

after  consolidation,   1908m 

agents,  unauthorized  Insurance.  1919f 

commissioner,  for  acts  of  deputy,  1967a 

deficient  premium,  life  company,  1950  (2) 

directors,  casualty  company,  1966 — 44  _ 

director",  -lUvldends,   employer's  liability   company,    1966^44 


277 

Liability — continued. 

directors,  mutual  companies,  1897i,   1945h 
directors,  town  mutuals,  18971  (2),  1936 
discharge  of,  impairment,  1912 
dividends  to  policy,   1952c 

for  unearned  premium,  fire  company,  1941 — 63s,  1946d 
incorporators  during  organization,  1774n 
incorporators,  mutual  company,  18971 
limited  in  mutual  company,  when,  1897b,  1897c 
members  of  town  mutual,  1933 
not  to  equal  assets,  life  company,  1949 
person  sharing  commission,  1897f  (3) 
promoters,   stock   company,   1773 

property  owner  for  tax  on  premium,  1926,   1211 — 34 
release  from,  fidelity  bond,   1966 — 35 
reserve,  computation,  casualty  company,  1966 — 47 
soliciting   unauthorized    insurance,    1919f 
stockholders,    impairment,    1913,   1969 
surplus  notes,  mutual  company,  1897g  (4) 
Liability  insurance 

authorized,   1897    (5),   2394—26 

distribution  of  unallocated  expense  payments,  1966 — 47a  (3) 
excepted  from  accident   insurance   regulation,    1960    (12) 
not    affected,    2394—26 
policy  conditions,   1966 — 42 
rates,  filing,  1921—30  to  1921—36 
risks,  filing,  1921—30  to  1921—36 
schedule  of  experience  to  be  filed,  1966 — 47a  (4) 
see  health,  accident,  and  health  and  accident 
Licenses 

action  to  compel  prohibited,  76.37 

adjusters,  fire  insurance,  1943m 

adjusters,  town  mutuals  exempt  1943m   (10) 

agents  to  have,  1976 

application,  life  company,   1953d 

application,  schedule  of  commissions  to  accompany,  1977 — 4 

causes  for  revocation,  see  agents'  licen^s — revocation 

see  company  licenses — revocation 
certified  copy,  evidence,  mutual  benefit  society,  1958  (15) 
companies  to  secure,  1917 
conditions,  life  company,   1953e 
conditions  precedent  to  issue,  1948 
destruction  of  old  files,  1976m 
division  of  commissions,   1976    (5),  1955o    (2) 
examination  prior  to,   lS97t,   1915,   1948 
exceptions,  1919a,  1977 
expiration 

actions  against  company,  1970o 

accident  company,   1916 

adjusters,  1943m  (2) 

casualty  company,  1968  76.32 

compensation  rating  bureaus,  1921 — 16 

fire  and  marine  companies,  1211 — 31,  1916 

fire  rating  bureaus,  1946 — 4 

foreign  fire  company,  1916 

hail  company,  1916 

life  company,  1916  76.34 

mutual  benefit  societies,  1958   (15) 

reinsurance   companies,   1914a 

surety  companies,  76.32 

Burplai!  lines,  76.33 


278 

Licenses — oontiiiiiocl. 

fees,  1972  (Ic) 

fees  in  lieu  of  taxes,  70.34 

foreign  companies,  1916  76.34 

foreign  fire,  1916,  1917 

form  of,  76.37 

general   provisions,   76,34 

insurance  rate  making  bureaus,   1946 — 4 

interinsurers,  1915m   (11) 

life    company,    1947    (5),    1948,    1959    (28),    1972a,    76.34 

life  companies,  conditions  precedent  to  issue,  1953d 

mutual  benefit  societies,   1958   (15),   1959   (28),    (29) 

mutual  benefit  societies,  foreign,  1958   (16) 

name  of  licensee  to  be  mailed  to  commissioner  on  day  issued,  1976  (2) 

not  to   issue  to  mutual  benefit  with   name   similar  to  another   com- 
pany, 1958   (15) 

penalty,  see  agents'  licenses — revocation 
see  company  license — revocation 

rate-making  bureau,  1946 — 4 

rating  bureaus,  workmen's  compensation,   1921 — 16 

reciprocal  law,  76.36 

reinsurance  company,  1914a 

renewal  not  to  be  granted,  when,  life  company,  1947   (5) 

retaliatory  law,  76.35 

schedule    of   commissions   beforf-   issue,    1977 — 4 

special,   old  members,   mutual    benefit   societies,    1958    (3) 

suit  to  restrain  or  enjoin,  76.37 

stock  company,  1947p 

suretyship  company,  1966 — 33f  (1) 

surplus  lines,  1919m 

title  guaranty  companies,  see  17771,  statutes 

to  be  filed  in  department,  1976m 

unauthorized  insurance,  1919m 

violation  by  agent,  1955o 
License  fees 

actions  affecting,  76.37   (2) 

adjusters,  1943m  (2)       , 

agents,  1972 

basis,  76.31 

domestic  mutuals  exempt,   76.30    (2) 

domestic  life  companies,  76.34 

foreign  company,   1916   76.34 

fire  and  marine  companies,  76.30 

Interinsurers,   1915m   (11) 

life    companies,    76.34 

rating  bureau,  fire,  1946 — 4 

reciprocal    provision,    76.36 

reinsurance  companies,   1914a 

retaliatory    law,    76.35 

suretyship    companies,    76.32 

unauthorized    insurance,    1919m 
License  revocation 

see  agents'  license — revocation 

see   company  license — revocation 
License  year 

accident   companies,    1916 

adjusters,    1943m    (2) 

casualty    companies,    1916    76.32 

compensation    insurance    rating   bureau,    1921 — 16 

fire  and  marine  companies,   1916,   76.30 

firo    r:itliig    bui-oau.s,    1946 — 4 


279 

License    year — continued. 

foreign  fire  companies,   1916 
hail   companies,    1916 
life    companies,    1916    76.34 
mutual  benefit  societies,   1958   (15) 
reinsurance   companies,   1914a 
surety  companies,  76.32 
surplus  lines,   1919m 
Lien  on  stock  profits,  1904 
Life  fund,   state,   19S9m 
Life  insurance  companies 

accident   insurance   permitted,    1947a 

absconding   insured,    fraud,    4438e 

actuarial   computations,    1946x,    1947o,    1950,    1950c,    1950d,    19o0f.    1958 

(2),  1959   (22),  1989m   (5,   6),  3871m 
see  Experience  Tables  of  Mortality 
additional    commissions   prohibited,    1950s 
advances    to    agents,    limited,    1950q 
advances  to  agents,  report,  1950n 
advertisements,    1946a   to    1946em 
advisory  board,   1955o    (3) 

agents,   compensation   only   as   agreed,   1950r 
agency   supervision,   expenses,    1950n 
agent's    license,    1916,    1972a,    1976m    76.34 
agent's   license   revocable,    1947    (5),    1955o 
agent's    misrepresentation,    1946f 
agent's    qualifications,    1976    (7) 
amortization,   1951f 

annual    apportionment   of    surplus,    1952a 
annual    statement,    contents,    1954 
annual    statement,    time    for    filing.    1954 
amount  at  risk  defined,   1946x 
annuity,    value,    1950d    (2) 
application,    contents,    1947    (3) 
application,  copy  on  request,   1953b 
approval  of  policies  1948f 
articles,    contents,    1947    (2) 

ascertainment   of   dividends,   credits,    1952b,    1952f,    19o2h 
assessment,    1955y — 1 

assessment,    valuation    of   policies,    1950,    19o5y— 1 
assets    not    equal    to    liabilities,    1949 
assignment   of  policy  by  married  woman,    234, 
authorized,  1897    (3) 
ballot,    form    of,    1947s 
beneficiary    defined,    1946x 
bonuses  and  prizes  prohibited,   1950s,   1950t 
books  as  evidence,  4182a 

calendar   year,    expenses   limited,    1950o,    1950p,    1950q 
capital,    impairment,   1949 
certificates,  value,  basis,  1948 
circulars,    misrepresentation,    1946f 

commission,   1950q,   1950r,   1950s,   1955o    (2e),   1976    (o) 
company   defined,    1946x 
compensation    cumulative,    1950c 
compensation    to    agents,    1950q,    1950r,    1950s 
concealment,   fraud,   4438e 
consolidation,   1955—21  to   1955—26 
contingency   reserve,   1952a 
contingent    commissions,    1950s 

contract   other   than   policy   prohibited.    1955o    (2) 
costs    of   insurance,    filing,    1948f 


280 

Life  insurance  companies — continued. 

death   bar  to  evidence,   1955o    (9) 

deferred   dividends,    prohibited,    1952 

deferred    dividends,    diversion    prohibited,    1952g 

deferred    dividends,    policies,    excepted,    1952 

deferred    dividends,    statement    to    policyholder,    19521 

definitions  of  term,   1946x 

deposit  defined,   1946x 

deposit  by  foreign  life  company,  1950b 

deposit   of   securities,    1973 

discrimination,    1955o 

discontinuance,    1949 

distribution   of  surplus,   1952   to    19521 

dividends,    1946f,   1952,   1952a  to   1952d 

dividends,    apportioned,    1952c 

dividends,    factors,    1952c 

dividends,    how  applied,    1952c 

dividends,    statement    to    insured,    1952d 

domestic  company   defined,    1946x 

election  of  directors  to  fill   vacancies  caused  bv  sale   of  stock     1947 
(3e) 

endowment,   pure,    excepted,    1952b 

expenditures,    legislative,    1953e 

estoppel,    physician's    certificate,    1977 — 2 

expenses,   aggregate   limited,    1950p 

expenses,    first   year,   1950o 

expenses,    limitation,    1950m   to    1950q 

expenses,    provision    for,    limited,    1950m 

expense,   report   of,    1950m 

factors,  dividends,  1952c 

false   showing,   1946f 

fees,    1972   76.30   to   76.37 

fees  for  valuation,  1950a 

fees,    verifying    figures,    1948f 

first   year   expenses,    1950m,    1950n 

foreign,   defined,   1946x    (7) 

forfeiture,   writing  policies  after  discontinuation,    1949 

form  of  ballot,   1947g 

form  of  dividend  statement,   1952c    (3),    1952d 

form   of  report,   expense,   1950n 

fractional   policy  year,   apportionment   of   dividend,    1952c    (2) 

fraud   upon,   443Se 

future   dividends,   illustration,    1946f 

general   agent's   commission,   report,    1954    (25) 

health  insurance  permitted,   1947a 

home  oflice,  first  year  expenses,  1950n 

husband,   wife   may   insure,    2347 

illustration  of  net  cost  of  policies,  1946f 

immunity    to   witness,    1955o    (8) 

industrial    business    separate,    1953n 

industrial    excepted,    dividends,    1952h 

industrial    excepted,    limitation    of    loading,    1950m    (5) 

industrial    excepted,    expense    limitation,    1950t 

insured  to  have  dividend  statement,  1952d 

insured  defined,  1946x 

interest  element  in  mortality  charge,   1946x 

interest   on   deferred   dividends,    1952c 

interest    on    dividend,    diversion    prohibited,    1952g 

inspection  of  risks,   1950n   (1) 

Impairment,    1949 

investments,    1902,    1903,    1951,    1951f  i 


281 

Life    insurance    companies — continued 

joint   life   and   accident   policies,    1947a 

leg-islative   expenditures,   1953e 

liabilities   exceeding-  assets,    1949 

license,   1947    (5),    1948,    1955o,   1949,    1976.    76.34 

loading,  expense  charge,   1946x 

loading,   limitation,    1950m 

lobbying,   statement   of   expenditures   for,    1953e 

medical  examination,   1950n 

mortality   charge   defined,   1946x 

mortality  savings,   1950n 

mortality  table,   element  in   charge,   1946x 

mortality  table,  see  Experience-  tables 

mutual    may    distribute    surplus,    1952 

may  write   personal,   accident   and   health   insurance,    1947a 

married    woman,    assignment,    2347b 

misrepresentation,   penalty,    1946f 

net   cost  of  policies,   illustration   of,    1946f 

net  premium   in   excess   of   actual    premium,    1950 

net  value,   how   computed,   1950    (2) 

non-participating,    separate    exhibit,    1953n 

officers,   corporation   may  have    insured,   1748    (8) 

officers,   misrepresentation,    1946f 

ordinary  business,   separate   exhibit,   1953n 

organization,   1947 

paid-up  insurance,   1948m   (4),   1952b 

penalties,    1946f    (4) 

personal    insurance,   health   and   accident,    1947a 

policy  approved  by  commissioner,   1948f, 

anniversary  defined,  1946x 

defined,    1946x 
political    contribution,    statement    of,    1953d 

discontinuance  of  issue,  when,   1949 

disability,    1960    (6) 

entire    contract,    1955o    (2a) 

form    of,    1948f,    1955o    (6) 

provisions,   1948m 

policy,   valuation    of,    1950,    1950a,    1950b 

year    defined,    1946x 
policyholder,    application    on    request,    1953b 

may   request    statement,    deferred    dividends,    19521 

rights    in    surplus,    1947p 
political  contribution  statement  of,  1953d 
powers  of,   extended,   1947a 
premium   defined,   1946x 
premium    limitation,    1950m 
privilege   of  witness,   1955o    (7) 
prizes   prohibited,    1950s 
rate  discrimination  prohibited,   1955o 
rebating,    1955o 

rebating,   death   bar  to   evidence,    1955o    (9) 
reinsurance,    1955 — 21   to    1955 — 26 
report,  contents  1954, 

annual    1952h,    1953n,    1954 

concerning   surplus,    1952c 

failure    to    make,    penalty,    1953n 

false    statements,    penalty,    1953n 

gains   and  losses,    1953n 

surplus   and    apportionment,    1952c    (3) 

to   policyholders,    19521 
removal   of   clause,   1947    (5) 


282 

Life    insurance    companies — continued 

reserve    defined,    194Cx 

reserve,    how   computed,    1952 

reserve    liability,    1950 

reserve   value,    1948f 

revocation   for  removal    of   action,    1947    (3) 

rights  of  married  woman,   2347 

risks,   maximum    single,    1947    (3) 

risks,   minimum    number,    1947    (3) 

salaries,    limitation,    1947r 

services,   when   contract   for   prohibited,    1955o 

special   guaranty  fund,   1947    (3) 

statement,   dividends,    1952d 

statement,    policyholders   right   in    surplus,    1947p 

stock,    sale    prohibited,    1955o 

sum   insured,    delined,    1946x 

surplus,   a  liability   to   participating  policies,   1952c 

surplus,    distribution,    1952,    1955o    (2f) 

stock,    expense,    1950t 

surplus   diverted,    1952g 

surplus,   participating  policies,    share   in,    1952b 

surplus,    statement   of,    to   policyholders,    1952d 

taxes,   76.33   to   76.37 

taxes,   report   of,   1950m 

terminal    reserve    defined,    1946x 
testimony,   1955o    (7) 

to    discontinue   when    liability   exceeds    assets,    1949 
twisting,    1946f   (3) 
valuation  basis,  1950 
valuation  fee,   1950 
valuation   of  bonds,    1951f 
valuation   of  policies,    1948,    1950    to    1950d 
violation    of   law,    reinsurance,    1955o — 5,    1955 — 26 
waiver    of   defense,    1953b 
warranty,    physician's    certificate,    1977 — 2 
wife   may   Insure    husband,    2347 
see    assessment    life    companies 
see  mutual  benefit  societies 
liife   insurance   companies — domestic 
amendment  of  articles,   1947   (4) 
articles,    1947 

borrowing  money,    1947    (3)    (a) 
•  capital   required,    1947    (3) 
general  laws  applicable,   1947   (4) 
general  provisions,   1947  to   1955o — 5 
organization,    1772,    1773,    1896,    1897,    1947 
special    surplus,    1947    (3) 
Life  insurance  companies — domestic  mutual 
directors  must   attend   meetings,    1947k 
elections,   1947c  to   19471 
general    provisions,    1947c    to    1955o — 5 
policies,    1947o 
policyholders'    vote,    1947c 
salaries,    1947r 
surplus,   1952 

see   life   insurance   companies 
Life    insurance   companies — foreign 
admission,    1915 

annual  report,  1915   (3),  1952n,  1954 
articles,  copy  to  be  filed,   1915   (3) 
capital   required,    1915    (9) 


283 


Lifo    insurance    companies — foreign — continued, 
commissioner  to  accept  service,  1915  (2) 
conditions   precedent   to   license,    1915 
defined,  1946x    (7) 
deposit  in  U.   S.,    1915    (4),   1950b 
examinations,    1915,    1916,    1917,    1948,    1968 
expense    charges,    limitations,    1950n    to    1950r 
general   laws  applicable,   1916 

may  write   accident   and  health   insurance,    1947a 
removal  of   cause,   1915    (2),   1947    (5) 
retaliatory    law,    76.35 
service  of  process,   1915    (2),   2637 
taxes,   76.34 

valuation    of    policies,    1950b 
see    life    insurance    companies 
Limitation    of   capital,   consolidation,    190Sm    (Id) 
Limitation  of  actions 

health   and   accident,   1960,   3    (14) 

on    assessments   by   foreign    mutual    companie.s.    1945b 
policy   limitation,   1900 
standard  fire  policy,  1941x 
Limitation    of    expenses 
blue  sky  law,  1897f 
fidelity  bond,   1966—38 
life  agents  commissions,   1950q 
life    companies,    1950o    to    1950a.    1950t 
mutual    benefit    societies,    1957    (11) 
Limitation    of   expenses — continued 
mutual    companies,    1901j 
stock  companies,  1897f 
Limitation   of 

investments,   1902,    1903 
liability,  mutual  company,   lS97c    (2) 
loading,   1950m 
policy   conditions,    1900 
territory,  1897c  (2) 

recovery,   fire   policies,    1900f,    1943,    1943a 
fidelity    insurance,    1966 — 33i 
risks,    1897c    (2),    1898 
risks,   life  fund,   1989m    (14) 
Limited  mutual,  name,  1897b 
Liquidation,    insolvency,    1970m 
Literature,    to    be    filed,    1897f    (5) 
Live   stock   insurance 
authorized,   1897 
maxinaum    risk,    1898 
see   casualty  companies 
Lioyds   associations 

admission   of,    1915    (Ic) 
not   to   write  life   policies,    1915    (2c) 
standard    fire   policy   not   applicable,    1915    (Id) 
Loading  defined,   1946x 
Loans 

fire   company,   1902,    1903 
how  made,  1903 
life   companies,   1951 
state  life  fund,  1989m  (10) 
town   mutuals,    1931    (5) 
Lobbying   expense,   life    companies,    1953e 
Local    boards    of   underwriters,    1922    to    1925 
see   fire   insurance   rate-making 


284 

Lodge  system  defined,   1956    (2) 

Loss 

adjusters,   1943m 

amount    of    recovery,    coinsurance,    IDOOf,    1943a 

amount   of   recovery,    valued    policy,    1943 

appraisal,    standard   fire   policy     1941x 

arbitrations,   town   mutuals,    1934 

companies  option,   standard  fire   policy,   1941x 

during-  default,   town  mutuals,    1935 

form  for  notice  to  be  on  every  policy,   19461   (5) 

incurred   during   impairment,    directors   liable,    1966—46 

owner  may   assume   first   part,    1900f 

payment   of,   1941x,    1943m    (6) 

proof  of,  standard  fire  policy,  1941x 

recovery,  valued  policy  law,   1943 

requirements    in    case   of,    standard   fire   policy,    ]941x 

state  fire  fund,   commissioner   to   adjust,    1978c 

state  life   fund,   adjustment,   1989m    (12) 

subrogation,    standard   fire   policy,   1941x 

when  payable,   standard  fire   policy,    1941x 


M 

Mailing  ballot,  life  company,  1947g 
Management,  state  life  fund,  1989m 
Manufacturing   establishment 

regulations,   standard  fire  policy,   1941x 
Marine    insurance    authorized,    1897    (2) 

automobile  floaters,   1897a   (5) 

See  fire   and  marine 
Married    woman,    rights,    2347,    2347b 
Maximum  single  risk 

bank  deposit   guaranty  company,   1898    (3) 

casualty  company  1958   (6) 

domestic  life  1947   (3) 

interinsurers,  1915m   (3) 

life   fund,    1989m    (14) 

Lloyds,    1915 

mutual   benefit   societies,   1958    (6) 

mutual    companies,    1898 

stock   companies,   1898    ■ 
Mayor  to   investigate   fires,   19461 

McClintock's  Mortality  Table   Among  Annuitants,   1950d    (2) 
Mechanics,    employment    of,    standard    fire    policy.    1941x 
Medical  examinations 

life  companies,   1950n 

disability    insurance    excepted,    1957,    (3c) 

mutual   benefit  societies,    1957    (3b) 

state    life    fund,    1989m    (2) 
Meetings 

annual,    town   mutual,    1928,    1929 

directors,   life   companies,   1947k 

town  mutuals,  1929 

first,    organization,    1773 
Members 

classification,   mutual   benefit   society,   1958 

life   company,   minimum,    1947    (3) 

mutuals,  corporations  may  be,  lS97g 

old,    mutual    benefit    society,    1958    (3) 


285 

Members — continued. 

right  to  one  vote,  1897c 

town  mutuals,    1928 

who  are,  town  mutuals,  1933,  1939 
Merger   of  companies,    1908m 
Minimum  risks,   1898d 
Misrepresentation 

assets,  1946 

capital  and  surplus,   1946b 

future   dividends,   1946f 

identity   of    insurer,    1946em 

life   companies,    net   costs,   1946f 

risks,    1946e 

standard  fire  policy,   1941x 

surplus,   1946b 

warranties,    1977 — 1,    1977 — 2 
Mortality    charge    defined,    1946x 

Mortg'age,  town  company,  notice  if  owner  does  not  pay  assessment,  1935 
Mortality  savings,  1950n 

Mortgagee,   rights,    standard   fire   policy,    1941x 
Mortgages,    investments,    1903,    1951 
Multiple   lines,    1897a 
Municipal   bonds,    investments,    1903,    1951 

Municipalities    to    pay   premiums    on    bonds   of    officers,    1966 — 38 

Mortality  tables,  see  Experience  tables  of  mortality 
Mutual  benefit  societies 

accident  and  health   agents  to  be   licensed,    1976 

accident   associations,   deposit,    1958    (4) 

accident   societies,    1956    (8) 

accident  associations,  deposit  ir  another  state,   1958   (5) 

accident    company,    single   risk,    1958    (6) 

accounting,     apportionment,    (deferred     not    more    than     one     year, 
1957    (5m) 

action  for  policyholders,    1970o 

action,    service    of   process,    1958    (17) 

admission,    conditions,    1958    (2),    (3),    (16),    (17) 

age    limits,    1957    (3),    1958    (18) 

agent,   license   excepted,   1977 

agent    acting  after   revocation    of   license,    penalty,    4575c 

annual   apportionment,    1957    (Sm) 

annual    statement,    contents,    1959    (22a),    (23) 

annual     statement     not     required     of     foreign     society,     when,     1959 
(22,  i) 

articles,  amendments,   1958    (7) 

articles  to   be   filed,   1958    (16,   a) 

assessment  defined,  1956  (10) 

assets,   disability  benefits,    1959    (22,    f) 

attorney    for    service    of    process,    1958    (17) 

basis  of  valuation,   1959    (22m) 

beneficiary,   insured   may   change,    1957    (5) 

benefits  on  lapse,  1958   (2) 

benefits,  rates,   reserve,   1958    (2) 

book  entries,  evidence,   4182a 

by-laws,    filing,    1958    (16) 

certificates,    1958    (15) 

charter,   copy  to  be   filed,   foreign   society,    1958    (16) 

change   of  beneficiary,    1957    (5) 

children    admitted,    conditions,    separate    statement,    1958    (18) 

classification    of    members,    1958    (2,    f) 

commissioner  may  require  information,  1956    (6) 

condition  of  admission,   foreign,   1958    (16) 


286 

Mutual    benefit    societies — continued 

contracts,   1958    (15) 

consent  of  beneficiary  to  change  not  necesary,   1957   (5) 

copy  of  contracts  to  be  filed,  foreign  society,  1958   (16) 

corporation  may  be  beneficiary,   1957   (5) 

deferred   dividends   prohibited,    1957    (5m) 

defined,   1956    (1),   1895m 

deposit  in   another  state,   1958    (5) 

disability   benefits,    assets,    1959    (22) 

distribution   of  profits  not  deferred  more   than   one  year,    1957    (5m) 

examinations,  expenses,   1959   (24) 

examination,    foreign,    1958    (16),    1959    (25) 

examination  on  request,  1959   (26) 

examination,    statement   during,    1959    (27) 

excepted    premiums,    1960    (12) 

exempt  from   agent's   license   law,    1977 

exempt  from  fees,   1959   (30) 

exempt  from   supervision,   1956   (4),    (9) 

expenses   limited,   1957    (11) 

existing  contracts,   1958    (15) 

expenses,    revocation    of    license,    1959    (29) 

expiration  of  license,  1958   (15) 

fees,  1959   (30) 

fees,   service   of   process,    1959    (17) 

foreign,   admission,    1958    (16) 

foreign    examination,    1958    (16),    1959    (25) 

foreign,   service   of  process,   2637    (11) 

fraud,   obtaining  members,    4575e 

general   law,    exemption,    1956    (9) 

hearing    during    examination,    1959    (27) 

hearing   on    revocation   of   license,    1959    (28) 

information   to  members,    1959    (22,   e) 

insured,   moneys   due   exempt   from    creditors,    2982    (19) 

issuing   policy    after   judgment,    1974 

investments,   58.06,    1951,    1957    (10) 

lapse,  benefits,  1958   (2) 

law  exclusive,   exceptions,   1956    (4) 

license,  certified  copy,   1958   (15) 

license,    revocation,    1958    (15),    1959    (28),    (29) 

limitation   of   expense,    1957    (11) 

limit   of  liability,   1958    (6) 

lodge   system    defined,    1956    (2) 

losses,    1959    (22m) 

may    insure    children,    conditions,    1958    (18) 

maximum    single    risk,    1958    (6) 

married   woman's  right,   2982    (19) 

medical    examinations,    1957    (3a) 

membership,    age   limit,    1957    (3a),    1958    (18) 

members   not   to   vote   by   proxy,    1956    (2b) 

member,    information    to,    1959    (22) 

members,   insurance   exempt,    2982    (19) 

member,   fraud    in   becoming,    4575e 

membership,    1957    (3) 

minor,    insurance   exempt,    2982    (19) 

mortality  table.     See  Experience   tables 

name  not  to  be  similar  to  any  other,  1958  (15e) 

National   Fraternal   Congress   table,    1958    (2b)    1959    (19) 

now   members,   commission,    1956    (2) 

old    members,    1958    (3) 

organization,    1956    (10),    1958 

penalty,    acting    for    unauthorized    society,    4575e 


287 

Mutual    benefit    societies — continued 

penalty,    fraud    in    becoming    member,    4575e 

policy,    filing-  copy.    1958    (16) 

policy,    provisions,    1958    (2a) 

proxies,  voting  by  mail,   1956    (3a) 

rules,    reserves,    benefits,    1958    (2) 

reinsurance,    conditions,    1955 — 21    to    1955 — 26 

removal   of  cause,    1958    (16) 
'     real   estate  taxable,   1959    (30) 

report   to   commissioner   1958    (16),    1959    (23) 

report,   foreign   exempt,   vs^hen,    1959    (22,   i) 

report  to   members,   1959    (22),    (22m) 

reserves,    1958    (2) 

review   of   order   for   revocation,   1959    (28) 

revocation  of  license,  1958   (15).   1959    (28) 

rights  of  certificate   holders,   1270o 

rights   of  married   woman,    2982    (18) 

risks,  minimum  number,   1958    (lb) 

risks,   single   limited,    1958    (6) 

savings,    on   mortality,    1957    (11) 

savings,    profits,    annual    apportionment,    1957    (5m) 

separate  funds,   1958   (3),   1959    (22b) 

service    of    process,    1958    (17) 

soliciting  after  revocation,    4575c 

special    assessments,    1959    (30) 

social  members,    1957    (3d) 

special    license,    1958    (3) 

standard   of   valuation,    1959    (22d) 

statements  during  examination.   1959    (27) 

statement   not   required,   foreign,    1959    (22,   i) 

tabular   basis   of  valuation,    1959    (22m) 

taxes,   exempt,    1959    (30) 

transacting   business   before   licensed,    1958    (19) 

tuberculosis  sanatorium,   1957   (10) 

tuberculosis    sanatorium,    non-members    admitted,    1957    (10) 

twisting,  .1946f 

unauthorized,   agent,    4575c 

unauthorized,  agent  acting  for,  4575d 

U.    S.    Courts,   removal    of   actions   to.    1958    (16) 

valuation    basis.    1959    (22m) 

valuation  not  test  for  solvency.   1959   (22.  h) 

valuation    of   certificates   to   be   reported,    1959    (22.    a) 

valuation    on    request.    1958    (22n) 

violation   of  law,   penalty.   1959    (29) 

vote  on  amendment,   1958   (8) 

voting  by  mail.  1956   (3) 

warranty,  effect.  1977 — 1 

writing    only    health    and    accident    insurance,    must    license    agents, 
exception,    1976 
Mutual    cyclone   company 

exempt    from    rating    bureau    law,    1946 — 18 

organization 

domestic,   1972,    1896 
township    company,    1927 

see   fire    insurance,   mutual 
Mutual    insurance   companies 

officers  to   be  members,    1897c    (1,    c) 

see    fire    insurance    companies — mutual 

see   life    insurance   companies — mutual 

see  town  mutual  companies 


288 

N 
Name 

change   of,    notice,    1774 

false  use  of,  misrepresentation,  1946em 

if  liability  limited,  mutual,  1897b 

mutual   benefit   society,    1958    (15) 

mutual  companies,   must  contain  the   word   "mutual,"   1897b 

not    to    be    similar    to    any    other,    1772    (2),    1897b,    1915m    (3a),    1927 
(4),  1958   (15,  e) 

of  agent   may  be   on   standard   fire   policy,   1941 — 64    (4) 

stock    companies,    1897b 

to  be  on  face  of  policy,  1942 

to  show  kind  of  company,  standard   fire  policy,   1942 

town  mutual  company  1927   (4) 
National  convention  of  insurance  commissioners,  1972a 

appropriation  for  expenses  at,  20.55 
National    Fraternal    Congress    Table    of    Mortality,    1958    (2),    1958    (19), 

1959    (22) 
Neglect  of   insured   under  standard  fire   policy,   1941x 
Net   premium,    deficiency,    life    company,   1950    (2) 
Net  value,  how  determined,   1950 
Nonpayment  of  judgment,  forfeiture  1974 
Nonresident   niay   be  member  of  town   mutual,    1939 
Nonresident   agent,   division   of  commissions,    1955o    (2e) 
Northhampton    Table    of    Mortality,    3871m 
Notice 

action   against  company,   3219m 

application    for    admission,    foreign    company,    1915    (8) 

assessment,   town   mutual    company,    1935 

cancellation,   standard   fire   policy,    1941x 

claim,    1960,    3    (4) 

election,  vote  on  salary,  life  company,  1947r 

flre   loss,   form,    1946i    (5) 

first  meeting,    organization   life   company,    1947    (4) 

injury,   time   limit,   1966 — 49a 

revocation   of  license,   foreign   company,   1917 

violation  of  law,   1972a 

to   policyholder,   amendment   of    articles,    1896m,    1931 

to   policyholder,    reinsurance,   life   company,    1955 — 23 


O 

Oaths 

commissioner   of   insurance,    1967 

deputy    commissioner,    1967a 

secretary   of   town    mutual   may   administer,    1934 

state  fire  marshal  may  administer,  1946k 

Occupants,  change  of,   standard  fire  policy,   1941x 

Office   of  commissioner   to   be   in  Capitol,    1966y 

Office    of   rating   bureau    in    state,    1946 — 3 

Officers 

assisting   in    nominations,    penalty,    1947e    (2) 

fees    for    reporting    fires,    1946ci 

fees  for  services,   state   fire   marshal,   1946n 

life    companies,    1947c 

misrepresentation,    life    company,    1946f 

neglect    to   comply    with    fire   n-iarshal    laws,    1946m 

of  state   not  to  accept  gratuities,   4549g 

town  mutuals,   1929 

Options  of  company  in   case  of  loss,  flre,   1941x 

Order  approving   reinsurance,   1955 — 24 


289 

Order  of  commissioner   fixing-  basis   of   reserve   calculation,    1899 

reinsurance,    life   company,    1955 — 25 

review,    mutual    benefit    society,    1959    (28,    29) 
Order   to   repair  dangerous   buildings,    2394 — 52 
Organization 

assessment    health    and    accident    associations,    1955y — 3 

applications,    1897e,    1897t,    1915,    1927,    4575s 

articles,    1770b,    1772,    1773,    1896,    1897c.    1927 

blue  sky  law,  1897f 

by-laws,  1897d 

classification,    1897 

compensation    insurance,    1921 — 4 

contract   valid    in   favor   of   subscriber,    1897f    (7) 

defined,   mutual    benefit   society,    1956    (10) 

deposit   of  funds,   1897f   (2) 

discrimination    prohibited,    1897f    (4) 

domestic  life,  1947 

employer's  liability,   2394 — 26 

examinations,  1897t 

fees,    1772    (9),    1947    (3b),    76.30    to    76.37 

filing  articles,    1772,    1927 

foreig-n    company,    admission,    1915 

form   of   articles,    1772,    1897c,    1927,    1947    (4) 

general   provisions,    1772,    1773.    1896,    1897,    1897a 

liability  of  promoters,    1773 

life   company,    1947    (4) 

literature   to   be   filed,    1897f    (5) 

membership    during,    1897d 

multiple   lines,   1897a   (2e) 

mutual  benefit  societies,   1956   (10),  1958 

mutual   plan,    1897a 

penalty,    1897f    (16) 

person  sharing-  commission   disclosed,  penalty   if   not,   1897f    (3) 

promotion    expenses    limited,    1897f    (2m) 

purposes,    1897 

rate-making   bureau,    1946 — 2 

reinsurance    corporations,    1914a 

stock  or  mutual  plan,   1897a 

temporary  control,    1773 

town   mutuals,    1927 

town   mutual    reinsurance    company    1941a — 1 

votes,    1760 

who    may,    1896 

see    insurance    companies    under    each    classification 
Other  business  comm.issioner  not  to  engage  in,  1966y 
Other  business  state  fire  marshal   not  to  engage  in,   1946o 


Fald-up  insurance   1948    (4),   1952b 
Participating  policies 

annual    share   or   surplus,    1952b 

deferred  dividends,  holder  may   request   statement   19251 
interest   and   accretions    a   separate    liability,    1952c 
exceptions   for   sharing,    1952b 
Penalties 

absconding   insured,   fraud   on   life   company,    4438e 

accepting   gratuities,    4549g 

acting    for    mutual    benefit    society    after    revocation,    4675c 

19 


290 

Penalties — continued 

agent   acting  after   revocation   of   company   license.    4575c 

agent   acting  without  license,    1976 

agent,   unauthorized   insurance,    1919in,   4575c 

applications,    unauthorized    company    accepting,    4575c 

burning   building  to    injure   insurer,    4405 

commissioner   accepting    gratuities,    1968 

contempt   before  fire  marshal,   1946k 

discrimination,    1955o 

failure   to   maintain   fire    drills   in   common   schools.    553a — 2 

to   file  annual   statement,   1953n 

to    furnish    application,    1953b 

to  heed  fire  marshal's  order,  19461    (3) 

to   pay   tax,    1211 — 34 

to   report,   fire   company,    1920 

to    report,    foreign    company,    1920 

to   report,   reinsurance,    1919d   to    1919g 
false  return,   annual   report,   1920,    1953n 
false  show   of  assets,   4438j 

false   statement   to   board   of   underwriters,    1925 
false   statement   generally,    44S8em,    4438j 
false   use   of   name   of  company,    1946em    (3) 
fraud   on    fire    company,    4405 
fraud  on  life  company,  4438e 
fraud    on   mutual    benefit    societies,    4575e 
issuing   unlawful   health    or   accident    policies,    1960    (13) 
Issuing    life    policy    after    impairment,    1949 
issuing   other   than   standard   fire   policy,    1941 — 65 
issuing    policy,    unpaid    judgment,    1974 
life   company,    false   statement,    1953n 
misrepresentation 

assets,    1946a 
I  :  capital    and    surplus,    1946b 

f  future    dividends,    1946f 

f  identity  of  insured,   1946em 

risks,    1946e 
neglect  of  duty,   fire  marshal,   1946m 
nonpayment    of    judgment,    1974 
not    filing   by-laws,    1897d 
rebating,    1955o    (^b) 

removal   of  action,  foreign   company,    1917    (3) 
revocation   of  license 

see    agents'    license — revocation 

see   company  license — revocation 
soliciting  without  a  license,   1976 
state    employes    accepting    gratuities,    4549g 
suretyship  directors,    1966 — 44 
twiPting,    1946f 

riai<    ig   unauthorized    dividends,    1966 — 44 
uM.Tjthorlzed    insurance,    1919f,    4575d 
standard    fire    policy,    violation,    1941 — 65 
surplus   lines,    1919m 
violation 

adjusters    law,    1943m    (11) 

blue  sky  law,   1897f   (6) 

insurance    laws    generally,    1955o — 5 

interinsurers,    1919m    (9) 

organizing  company,   1897f  (6) 

rate-making    law,    1946 — 17 

reinsurance.    1955 — 26 

resident  agent  law,  1919a 
;  standard    jirovislons.     health    and    accident.     1960     (13) 


291 

Periodical    inspections   of   dangerous   building's,    2394 — 52,    2394 — 7i 
Perjury,   witness   not   immune   from,    1955o    (8) 
Personal    fidelity,    guarantee,    1966 — 33a 

see   1966a  to    1933n 
Physician's    certificate,    estoppel,    warranty,    1977 — 2 
Hate    glass    insurance,    authorized,    1897    (11) 
Policies 

action   to   protect   holder,    1970o 

actions   on,    joinder    as    defendants,    2609a 

ag'ent    to    countersign,    provision,    1941 — 64 

appraisal,    standard    fire,    1941x 

anniversary    defined,    1946x 

assignment   by   married    woman,    2347b 

assignment,    standard    fire,    1941 — 63 

assessment    life,    valuation,    1955y— 1 

approved   by  commissioner 
disability,    1948f 
fire,   1941X 

health  and  accident,   1960 
life,    194Sf;    non-assemble,    1897c 
town   mutuals,    1932 

ballot  not  to  validate,   1947j 

cancellation,    fire,    1937,    1941x,    1946d 

coinsurance  clauses,  1900f,  1943a 

conditions    in    employer's    liability,    1966 — 4 

deposits    a   preferred   claim    by   holder,    1941 — 63s 

entire    contract,    life    company,    1955o    (2a) 

exempt    from    execution,    when,    2982 

employer's    liability,    1966 — 42 

foreign    company,    1915    (4) 

form    of   standard    fire,    1941x 

form,    life    company,    1948f,    1955o    (6) 

hail   to    be    separate,    1897a    (4) 

health    and    accident,    1960 

Increase   of  risk,    standard   fire,    1941x 

industrial,    how    valued,    1950d 

issue  to  be  through  resident  agent,   1919a 

issue    limited,    life    company,    1948f,    1949,    1950m 

issue,  mutual  company,  1897^    1897,  1901m 

life   company,    expense   provision,   1950n 

liability    for    loss,    extent,    standard   fire,    1941x 

life    company,    report    to    show    number,    1954 

lightning'   clause,    standard    fire,    1941 — 62 

list   of,    mutual   life    company,    1947d 

loss,    amount    of    recovery,    1900f,    1943,    1943a 

loss,   insured  to   bear   first   part,   reduced   rate,    1900f 

loss,    requirements    in    case    of.    standard    fire,    1941x 

loss,    percentage    coinsurance,    1943a 

maximum  term,  mutual  fire,   1901n,   1932 

minimum  number  outstanding,   1898d 

mutual    benefit    societies,    1958    (2) 

mutual    provisions,    standard   fire,    1941 — 64 

name   of  company   to   be   on,    1942 

non-assessable,    surplus    requirements,    1897c 

noon    defined,    standard    fire,    1941x 

notice    and   proof   of   loss,    standard    fire,    1941x 

notice  of  loss   form   to   be  attached,   standard   fire   19461    (5) 

notice  of  loss  to  insurer,  conditions,  standard  fire,  1941x 

notice    of    injury,     time    limit,    health    and    accident,     1960,     3     (15) 
1966 — 49a 


292 

Policies — continued 

provisions  generally,  1900,   1941x,   1941 — 61   to   1941 — 65,   1948m,   1955o, 
1958.    1960 

railroad   ticket,   excepted   from   accident    and   health    provisions,    1960 
(12) 

resident    agent    law,    1919a 

resident   agent   law,   when    not   applicable,    1919a    (6) 

separate    for   each   class,    exceptions,    1897a 

separate,  what  to  cover,   1897a  (3) 

state   life    fund.    1989m    (14) 

state    life    fund,    combination,    1989m    (16) 

time  limit  for  beginning  action  on,  1900,  1941x,  1960,   (14) 

tourist    floater,     1897a     (5) 

town   mutuals,    approval    of,    1932 

unauthorized   insurance,   when    permitf,ed,    surplus   line,    1919m 

valued,  amount  of  recovery,  1943 

void   in    proportion    to   rebate,    1955o    (4a) 

waiver,    1941x 

warranty,    1977 — 1 

what  to  show,  mutual  or  stock    name,  1942 

when    issued    under    provisions    of    guaranty    surplus    fund,    1909 
Policyholder 

absconding,   fraud  on   life   company,   4438e 

application,    copy   on    request    of,   life    company,    1953b 

assignment    of    interest,    standard    fire,    1941 — 63 

assessment  life,    statement   of   credits   to,    1955y — 1    (4) 

beneficiaries,    mutual    benefit    society,    1957    (5) 

cancellation,    fire    company,    1941x,    1946d 

cancellation,  health  and  accident,   1960 

corporation    may   be    in    mutual    company,    1897g    (3) 

joinder   as    defendant,    2609a 

dividends   to,   life  company,    1952d 

elections,    mutual    life    company,    1947c   to    1947J 

entitled   to   statement   of   dividend    apportionment,    1952a 

false    statement    of,    4438em 

fraud    on    fire    company,    4405 

liability    under    standard    fire,    1941x 

liable  for   unpaid   assessments,   town  mutuals,    1936 

list   of   on   request,   life    company,    1947d 

may   request  statement   of  deferred   dividends,   19521 

nominations   by,    life    company,    1947a 

nonresident,    town    mutual,    rights,    1939 

notice  of  claim,  time  limit,  health  and  accident.   1960 

notice    to,    consolidation    or    reinsurance,    1955 — 23 

not  to   vote  by  proxy,  mutual  life  company,   1760 

not  to  vote  by  proxy,  mutual  benefit  society,  1956  (3) 

one   vote,   town   mutual,    1928 

own    risk,    no    commission,    exception,    1955o    (2c) 

preferred   claimant  for  unearned   premiums,   1941 — 63a 

proxies   Invalidated,   life   companies,    1760m 

rights    in    surplus,    life    company.    1947p 

rights  in  surplus,  life  fund,  1989m    (8) 

right    to    make    nominations,    mutual    life,    1947e 

right  to  vote  and  hold  oflfice,  mutual  life,  1947c 

right   to   vote   on    increase    of   salary,  mutual    life,    1947r 

reinsurance,    notice    of   hearing.    1955 — 23 

requirements    in    standard    fire.    1941x 

statement  to.  deferred  dividends,  life  company,   19521 

time  limit,   suit.   1900.   1941x.   19G0 

to   bear   first   part   of  loss,   reduced  rate,   1900f 

to   give   notlc*  of  loss  to   fire   marshal,    19461    (5) 


293 

Pol  i  oy  h  o  I  (U>r — co  n  t  i  n  u  ed . 

to    participate    in    accumulations,    life    company,    1947o 

vote,    cumulative,   mutual    life,    1947c 

who   is,   life  company,   1947c 
Policy  loans,  life  company,   1954    (34) 

Policy    number,    to    be    specified    on   ballot,    life    company,    1947s- 
Policy    provisions,    life    company,    1948m 
Policy    year    defined,    1946x 

Political    contributions,    statement   of,    life    company,    195Sd 
Polls,   when   open,   life   company,    1947h 
Premiums 

actual  less  than  net,   1950    (2) 

advance,   state  life  fund,   1989m    (7) 

annual,    basis,    liability    company,    1897c 

basis    of    reserve    liability,    1966 — 47 

collection   of  one  annual,   mutual   companies,   1897s 

deduction    for    service    prohibited,    1955o    (3) 

deferred    payment   rebate,    1955o    (21) 

deficient,    valuation,    life    company,    1950    (2) 

deduction   upon  settlement,   health  and  accident,  1960,    (4)    (3) 

expense   charge    provided   in   policy,    1950    (3) 

expense  exceeding-  provisions  for,  life  company,   1950    (3) 

expense   provision   in,   life   company,    1950m   to   1950t 

extension   of  credit  rebate,   exception,   1955o   (2i) 

fidelity   bond,   municipalities   to   pay,    1966 — 38 

for   annuities,   life   fund,    1989m    (5) 

level    basis    presumed    unless    otherwise    specified,    1948m 

life  fund,   basis,    1989m    (4) 

life,  defined,   1946x 

life   policies,   1948f 

limitation    of   loading,   life,    1950m 

loan,    automatic,   when,    1948m    (1) 

loans    on,    life    fund,    1989m    (10) 

mutual,   basis   of  limited  liability,   1897c 

not  used  for  promotion,   1897    (c) 

on   fidelity  bond,   chargeable  as   disbursement,    1966 — 36 

policyholder   preferred   claimant   for   unearned,    1941 — 63s 

policy   to   show,    life   company,    1948f 

promotion  expenses  not  to  be  paid  from,   1897s    (2) 

rates,   mutual    benefit    societies,    basis,    1958    (2a) 

rates   not   to   be   discriminatory,    fire    companies,    1946 — 1    to    1946 — 18 

rate    of    interest    assumption,    1950c 

rebate    of   voids    policy   in    proportion,    1955o    (4) 

reduction,   coinsurance,   1900f,    1943a 

return,    unearned    portion,    1941x,    1946d 

separate  for  benefits  other  than   life,   1948m 

payments    of,    life   fund,    1989m    (8) 

state   life   fund,    1989m    (3,    4,    5) 

tax  on  for  fire  department  dues.   1926 

see   Experience   Tables  of  Mortality 

see    actuarial    computations 

see    insurance    rate-making 
Premium    notes 

fire   company   to    report,    1920 

form   of,    1944 

insolvency,   void,   1945 
President    and    Vice    Presidents    of    mutual    company    must    be    members, 

1897c 
Prima  facie   evidence,  misrepresentation,   1946c 
Privilege    of    witness,    immune    save    for    perjury,    1955o    (8) 
Prizes  and   bonuses   prohibited,   life   company,   1950a 


294 

I'rocess,    service    of.    1915    (2),    191fm,    1919,    1953,    1958    (17),    2637 
Process,    service    of,    commissioner    to    accept,    1915    (2b) 
Promotion    expenses,    limitation,    1897f    (2m) 

not  to  be  paid  from   premiums,   1897s 
Prohibited   policy   provisions,    1900 
Promotion    of   stock    companies,    1773,    1774n,    1897f 
Proof  of  claim,  health  and  accident  insurance,  1960  (2A) 
Proof  of  loss,   standard  fire   policy.   1941x 
Property  exempt  from  taxation — personal   of  insurance  companies,   1038 

(13) 
Property   owner 

liable    for    fire    department    dues,    1926    (5) 

may   assume    first    part    of    loss,    1900f 

must  pay  tax  on  unauthorized  insurance,   76.33 

must  sign  reports  of  adjustment  of  loss,  1943m 
Pro   rata  liability,   standard   fire   policy,    1941x 
I'rosecution   of  arson   cases 

attorney-general  to  assist,   1946j   (2) 
Proxies  invalidated,    life   company,    1760m 

member  mutual  benefit  society  not  to  vote,  1956   (3b) 

stock   companies,   1760 

town  mutuals,  women  may  vote,  1928 
Publication 

assessment    notice,    1935 

change  of  name,  stock  company,  1774 

cominissioner's    statistics    of    companies    reporting    to    the    depart- 
ment,   1972 


Quorum 

Compensation    Board,    1921 — 3 
directors,   1749 
mutuals,    1896m    (2) 
town  company,   1928    (1) 


R 

Railroad    ticket    policies,    excepted    from    accident    insurance    provisions, 

1960    (12) 
Rate  of  interest,   1948,  1950c 
Rates 

anti-compact  law,    1943b 

coinsurance,   1900f,    1943a 

commissioner    to    establish,    fire,    1946 — 11 

compensation   insurance  board   to   make   1921 — 2 

di.scrimination    prohibited,    compensation,    1921 — 20 

discrimination  prohibited,   fire,   1946 — 8,   1955o 

discrimination    prohibited,    life    company,    1955o 

filing,    1921 — 21 

liability    insurance,    1921 — 30    to    1921 — 36 

life    companies    to    file,    1948f 

mutual   benefit  societies,   1958   (2) 

supervision,   fire,    1946 — 1 

supervision,   workmen's   compensation,    1921 — 1    to    1921 — 18 

not  to   be  discriminatory,   1946 — 7,   1955o 

standard    fire    policy    to    show,   coinsurance,    ISOOf,    1943a 

ff-mporary.    fire,    194  6 — 14 


295 


Rating  bureaus 

fSrp    1946 — 1   to   1946 — 29  iq^c      k 

fown   mutuals   and  xnutual    cyclone   co-panies    exen.pt.    1946-11 

compensation    insurance.    1921-1    to    1921-18 
Real    estate,    investments    in    limited.    1902 

valued    policy,    1943 

Rebate  _..      ... 

advisory   board,    contracts,    l^^^o    (3) 
deductions  for   services  prohibited    1955o    (3) 
deferred    payment    of   premium,    1955o    (2i) 
distribution   of   dividends   not.    1955o    (2b) 
division   of   commission    not,    1955o    (2e) 
effect'  of    revocation,    1955o    (5m) 
extension  of  credit.  19550   (2i) 
furnishing    information   not,   1955o    (2h) 
penalty.    1955o    (4b).    1955o— 5 
policy   void    in   proportion    to,    1955o    (4a) 
prohibited,   life   company.    1955o    (2b) 
revocation    of    license.    1955o    (5) 
suretyship    corporation.    1966 — 33g    (6) 

Receiver 

commissioner   on   insolvency.    1970m 
foreign   company,   1945b 
mutual   benefit   society,    1958    (4) 
may    reinsure    risks,    1905 
powers    of    3219 

reinsurance,    casualty    company.    1966—48 
statement  by,   1921 
Reciprocal    provisions 

accident    and    health    policies,    1960    (10) 
Record  of  fires.    19461 
Records,    arson    cases.    1946J 

of   violations    of    law,    1950    (8) 

town  mutuals   to   be   filed  with    commissioner,    1929 
Recovery    of    license.    76.37 
Reduction   of   capital 

casualty   company.    1966 — 46 
commissioner   to   permit,   1970 

Refunds 

appropriation   for,    20.06 
of   deposits,    20.06 
state  life  fund.  1989m  (9) 
Reinsurance 

accident   and  health.    1955—21    to   1955—26 

admitted    companies,    1905 

attorney-general    member    of    commission,    1955—^4 

authorized.    1897a.    1914a 

bank   deposit   guarantee   company.    1898    ^\> 

commissioner   member    of    commission,    1955—^4 

companies    may    assume,    1905 

companies    may    cede.    1905 

deduction   to    determine   maximum    single   risk.    1898 

disability    companies.    1955 — 23 

expenses.    1955 — 25 

fees   and   taxes.   1914a 

fire  company  to  report.  1919a 

foreign    company,    withdrawal    of    securities,    1918 

general   provisions.   1905.   1955—21   to   1955—26 

hearing    by    commission.    1955—23 

life    company.    1955—21    to    1955—26 

limitations.    1905 


296 

Reinsurance — continued 

mutual  benefit  society,   1955 — 21   to   1955 — 26 
no    compensation    for    effecting,    1955 — 25 
notice    to    policyholders,    1955 — 25 
of  unauthorized  company   prohibited,   1905    (3) 
organization    of    company,    1914a,    1941a — 1 
penalties,    1955 — 26 
receiver    may    effect,    1905 

resident  agent  law   not  applicable,   1919a,   1919g 
special    committee    to    hear    petition,    how    composed,    1955 — 24 
standard   fire   policy,   1941x 
state   insurance    fund,    1978d 
town    mutuals,    1931a   1941a — 1 
Rejection,    state   life    fund,    1989m    (7) 
Release    from   liability,    casualty   company,    1966 — 35 
Removal   of  cause,    see   service   of   process 
Removal  of  property 
fire    patrol,    1923 

industrial    commission    to    order,    2394 — 52 
standard    fire    policy,    1941x 
Renewal    of   license,    1947    (5) 

Reorganization    of   assessment    life    company,    1955y — 2 
Reorganization    of   mutual    to    stock    prohibited,    1897k 
Repair  or  replace  property  damaged,  standard  fire  policy,   1941x 
Reports 

adjustments   of   fire  loss,    1943m 
agents'    commissions,    1977 — 4 
assessments,    foreign    mutual,    19451 
commissioner  as  ex  officio  fire   marshal,   1946p 
commissioner,    condition    of  companies.    1971.    1972b 
commissioner   to  make   monthly,    1972c 
dividends,   life   company,    1952h 
expenses,   life   company   to   make,    1950n 
fires,   fee   for  making,   1946f 
fire   and   marine    companies,    1920 
fire  loss,    19461    (5) 
foreign    fire    company,    1915 
insolvency,    1970m 
interinsurers  to  make.   1915m   (5) 
insured  to  have  on  request,   life  company.    1952d 
life   companies.    1950n.    1953,   1954 
life   company,    falsifying,    1954 
legislative    expenses,    life    company,    1953e 
mutual    benefit    societies,    1958    (15),    (16),    1959    (23) 
owner  or  occupant   to  make  in   case  of  fire,    19461    (5) 
political    contributions,    1953d 
premiums,    fire    department    dues,    1926m 
prizes,   contests,   life  company,   1950s 
rate-making    bureau,    1946 — 12 
receiver    to   make,    1921 
reinsurance  company,   1919d 
state    life    fund,    1989m    (17) 
surplus,    apportionment,    1947p,    1952c    (3) 
surplus   lines.    1919m 
town    mutuals.    1938 

valuation,    mutual    benefit    society,    1959    (22),    (22m) 
Representations,    physician's    certificate,    1977 — 1 

Representative    form    of   government,    mutual    benefit   society.    1956    (3a) 
Reserve    liability 

casualty    company,    1966 — 47 
commissioner    to    fix    basis,    1899 


297 

Reserve     liability — continued 

fee   for  verification,    1948j 

interinsurers,   1915m   (6) 

life    companies,    how    determined,    1950 

life    company,    defined,    l946x 

life    company,    rate    of    interest,    1950c 

method   of  computing'  for  workmen's   compensation,    1966 — 47a 

mutual    benefit    society,    1958    (2) 

reinsurance    companies,    1914a 

suretyship   company,    1966 — 4 

state   life   fund,    1989m    (3) 
Resident   agent   law,    1919a 
Restoration    of    capital,    1969 
Retaliatory   law,    1968    (5),    76.35 
Retirement,    1905 
Return    premium 

fire    companies,    1941x,    1946d 

policyholder    preferred    claimant,    1941 — 63s 

short  rate  table,   1946d 
Revocation   of  license 

see    agents'    licenses — revocation 

see    company    licenses — revocation 
Riders  for  extra  fire  hazards  to   be  filed,   1946 — 15 
Risks 

casualty    companies,    maximum    single,    1958    (6) 

classification   of,   1897,   1901m,   1921 — 9 

defined,    1946x 

fire    companies   may    assume,    1945c 

increase,   material   fact,   1977 — 1 

inspection   of,    fire.   1946 — 1    to   1946 — 18 

inspection,    workmen's    compensation,    1921 — 8 

interinsurers,    1915m 

liability   for,    mutual    companies,    18971 

life   companies,    1947    (3) 

limitation,    1898,    1960,    1966 — 33i 

Lloyds,    maximum,    1915 

maximum   single,   1898 

minimum  outstanding,  1898d 

misrepresentation  of.   1946c 

multiple   lines,    1897a 

mutuals,    classification,    1901m 

reinsurance,    1905 

reinsurance    deducted    in    determining    maximum,    1898 

rider  for  extra  hazard  to  be   filed,   1946 — 15 

separate   policy   coverage,    1897a    (3) 

standard   fire   policy,    1941x 

state    life    fund,    limitation,    1989m    (14) 

town    mutuals,    1931 


S 

Salaries 

appropriation   for,    20.55 

department   of   insurance,    20.73,    1968 

domestic    mutual    life    companies,    limitation,    1947r 
Schedule    of    compensation,    1966 — 47a    (4) 
Secretary   of   state 

audit    fire    department    dues,    1926m 

state    insurance    fund,    1978d 

state    life    fund,    1989m 


298 

Securities,    deposit    with    state,    197^ 

surety   companies   required,    1966 — 33e 
Security    for    costs,    fidelity    bond,    3783a 

Self-criminating^   plea,   no   excuse   from   testifying,    1955o    (7) 
Separate    ballot,    life    company,    1947f 
Separate    policy,    exceptions,    1897a    (3),    (4),    (5) 
Service   of    process 

corporations    generally,    domestic    2637 

corporations,  same  as  on   persons,   2637 

foreign    companies,    discontinuing   business,    1919 

life  companies,   1947    (5) 

license    fees,    action    on,    76.37 

mutual  benefit  society,   domestic,  or   foreign,   1958   (17),   2637    (11) 

on   foreign   company   by   servicf   with    secretary   of   state,    2637    (10 > 

on    agent    last    designated,    foreign    company,    1919 

on    officers   of    domestic   companies,    2637    (10) 

secretary  of   state   to  mail   to  foreign   companies,    2637    (10) 

suretyship    company,    1966 — 33c:    (2) 
Service    to    improve   risk    not    rebate,    l955o    (2h) 
Session   laws,    see    table   preceding   index 
Short   rate   cancellation   table,    1946d 
Single   risk,    1898,   1915    (c),    1958    (6),    1960 
Size    of    standard    fire   policy,    1941x 
Solicitation 

interinsurers  before  admissioii,   1915m    (9) 

unauthorized    insurance,    1919f 
Son,    married   woman    may    insure,    2347 
Special    assessment,   mutual   benefit   society,    1959    (30) 
Special   guaranty  fund,   life   companies,   1947    (3) 
Special   license,  mutual   benefit   society,   1958    (3) 
Special  reserve  fund,  1909  to   1912 
Special    surplus   fund,    1897a 
Sprinkler    leakage    insurance 

authorized,   J897    (12) 

fire  company  may  write,   1945c 
fcetting  fires  to  injure  insurer,  fraud,  4405 

arson,    prosecution,    1946k 
Stamping  office,  1946 — 13 
Standard  fire  insurance  policy 

agent  to  countersign,  provision.  1941^ — 64 

agent's  name  on,   1941 — 64   (3) 

assignment  of  interest,  1941 — 63 

cancellation,  1941x,   1946d 

coinsurance,   1900f,   1943a 

commissioner  to  provide   form,   1941x 

contract  exclusive,  1900,  1941 — 64 

forms,  endorsements,   1941 — 63 

form    exclusive,    exception,    1941 — 64 

insured  preferred  claimant  for  unearned  premium,  1941 — 63s 

interinsurers  exempt,   1915m 

issued  within  state,  1941 — 64m 

joint  policies,  1941 — 64   (5) 

Lloyds  exempted  from,   1915 

lightning  clause,   1941 — 62 

loss,  amount  of  recovery,  1900f,  1943,  1943a 

loss,  insured  may  bear  first  part,  1900f 

loss,  notice  of,  19461   (5) 

mortgagee,  1941 — 63 

mutual  company  provisions,   1941 — 61 

other  matter  permitted,   1941 — 61   to   1941 — 64 


299 

Standard  fire   insurance   policy — continued 

other  provisions  required,  1941 — 64 

penalty,   1941 — 65 

policy  form,  1941x 

policyholder  preferred  claimant  for  unearned   premium,   1941 — 63s 

preparation  of  form,  1941x 

prohibited  provisions,  1900 

stock  company,  name  on  face,   1942 

rates  with  and  without  coinsurance,  1943a 

tourist  floater  business   exempt,   1897a   (5) 

town   mutuals   exempt,   1932 

void,  when,   1941 — 64 

valued  policy,  1943 
Standard  Industrial   Mortality  Table,   1950d,    1958    (18) 
Standard  Provisions  Law,   see   health,   accident,   and  health   and  accident 

insurance 
Standard  forms,   life   policies,   1948m 

Standard   provisions,   health   and   accident   policy,    1960 
State   buildings,    insurance   of,    1978a   to   1978d 
State  employes,   gratuities,    1955 — 25,    1968,   4549g 
State  aid   for  fire   protection,   appropriation   for,    20.56 
State  fire  marshal 

annual  report,  February  15th.   1946p 

appropriation   for,   20.55 

arrests  for   arson,   to   cause,    1946j 

assistants,   appointment  of,    1946h 

authority  to  enter  buildings,   1946k    (4),   19461 

clerks,   employment,    1946n 

commissioner,    ex   officio,    1946h 

deputy   commissioner   as   chief  assistant,   1946h 

district  attorney   to  be  given   evidence,   1946J 

duties,   1946i 

fees  for   assisting,    1946n,    1946q 

fires,   fees   for    reporting,    1946q 

inspection    of   buildings,    see    2394 — 52,    2394 — 71 

investigation  of  fires,  1946i  to   19461 

investigation,    private,   1946k 

mayors,  fees  for  reporting  fires,  1946q 

mayors   to   investigate   fires,   19461 

notice   of   loss   to,   19461    (5) 

not  to   engage   in   other  business,    1946o 

oaths,  administered  by,   1946k 

penalty,   1946m 

power  to  administer  oaths,   194  6k    (2) 

records   of   arson   cases,    194  6j 

record   of   fires,    1946i 

report   of  fire  departments  entitled   to   dues,    1926m 

report   to   Governor,    1946p 

subpoena,   1946k 

salaries   and  fees,    1946n 

supervision  of  fire  departments,  1926 

testimony,   1946j 

to  compel  attendance  of  witnesses,  1946k 

town  clerk   to   investigate   fires,  fees,   19461,    1946q 

village   president    to   investigate   fires,   fees,    19461,    1946q 

w^itnesses,    fees,    1946q 

witnesses  may   be   kept  separate,   19461 
State  insurance  fund   for  public  buildings,   1978a  to   1978d 
State  life  fund,   1989m 


300 

statements,    annual 

fire   companies.    1920 
life  companies.  1953.  1954 
town   mutuals.    1938 
see  reports 
statement   lilanks,   commissioner   to   furnish,    1954.    1971 
Statements,    receiver   to   make,    1921 
State    treasurer 

commissioner  to  remit  to,  daily,  1972c 
deposit   of  securities  with,   1973,   1973m 
fire   department   dues,    1926m 
see   state  insurance  fund 
see  state   life  fund 
Steam   boiler   insurance 

authorized,   1897    (6),    1897a 
fire  companies  not  to  write,  1945c 
Stock 

blue   sky  law,   1897f 
each    share   one   vote,    1760 
investment,    1903.    1951 
lien    on    profits.    1904 

prohibited   sale,    life  companies,    1955o 
subscription    contract,    1897f 
to   be   paid  in,   1773 
transfer,    1904,    1947    (3e) 
Stock  companies 

capital  and  surplus,  1897g- 
capital    increase,    1908,    1908a 

conditions,    precedent    to    beg-iimin,^    business.    1897gr 
blue   sky   law,   1897f 
org-anization.    1772,    1773,    1896 
foreign,    admission,    1915    (la) 
capital    required,    1897g- 
reinsurance.    1914a,    1955 — 21 
taxes,   76.30   to   76.37 
surplus    required,    1897g    (2) 
Stock   dividends,    1908a,    1966 — 45 
Stockholders 

contributions,    1913 
personal  liability,    1774n 
vote,   proxies,    1760 
Stocks  and  bonds,  see  investments 

Subjects   for   which   companies   mav    be   formed,    1897 
Subrogation,    standard    fire    policy.    1941x 
Standard    Industrial    Mortality   Tr.ble,    1950d,    1958    (IS) 
Substandard  Industrial  Mortality  Table,  1950d 
Surety  bonds  need  not   be   under  sfal.   1966 — 33b 

see  fidelity  bonds 
Surety    companies 

authorized,    1966 — 33a 

general    provisions,    1966 — 33a    to    1966 — 33n 

admission,   1966 — 34 

judge    to    notify    bondholder,    1966 — 34    (5) 

insolvency,    commissionor's    dtity,    1966 — 34     (5) 

license    year,    76.32 

powers,    1966 — 33 

reserve    liability,    1966 — 47 

year   defined,    1966 — 44 


301 


Suretyship    insurance 

authorized,    1897    (7) 

certificate    of   authority,    1966—34 

fidelity    bonds,    1966 — 34 

deposit  of  money,   1966 — 37 

estoppel,    1966 — 39 

fidelity   bond,    expense   limitation,    1966 — 39 

increase   of   capital,    1966 — 45 

penalty,  directors,   1966—44 

premium,    recoverable    as   costs,    1966 — 36 

rebate,    1966 — 33g    (6) 

release   from   liability,   1966 — 3E 

see   fidelity  insurance 
Surplus 

ascertainment,    1952a 

accretions   separate  liability,   1952c 

annual    accounting,    life    policies,    1952h 

apportionment,   statement   to    policyholder,    1952d 

deferred,    set    apart,    1952f 

distribution    annually,    life    con.-pany,    1952a 

distribution    not   deferred,    1952 

domestic   life   companies,    1947    (3) 

interest    separate    liability.    1952c 

investment,    1911 

life  company,  report,  1952c,   1953n,   1954 

mutual    company,    dissolution,    1897k 

mutual    life    company,    distribution,    1952 

non-assessable  policy,   1897c   (2) 

not  to  be  diverted,   1952g- 

participating   life    policies   to   share    annually,    1952b 

policies    excepted    from    sharing,    1952b 

reduction,    casualty    companies,    1966 — 44 

required,  1897c,  1897g 

requirements,    stock    companies,    1897g 

safeguarded,    mutuals,    1897k 

state    life    fund,    1989m    (9) 

surety   companies   required,    1966 — 33c,    1966 — 33d 
Surplus  fund,    1897s 
Surplus   lines,    1919m 
Surplus   notes,    1897g    (4) 
Survey   of   risks,    rate-making  bureau,    1946—7 


Table   of   contents,    page    3 

Table  of  mortality,  policy  to   specify,  1948m 

Tables   of   mortality   referred   to   in    this   compilation 

see    Experience    Tables    of   Mortality 
Table   of   rates,   life   companies   to   file,   1948f 
Tabular  basis  for  valuation,   1959    (22m) 
Taxes 

general    76.30    to    76.37 

fire   department  dues,    1926m 

inheritance,    valuation.    3871m,    72.15 

interinsurers,    1915m    (11) 

mutual    benefit   societies,    1959    (30) 

owners    liability    for,    1926,    70,33 

personal  property  of  insurance  companies  exempt,   1038   (13) 

surety   company  exempt,   when,    1966 — 33    1 


302 

Taxes — continued 

surplus   lines,    1919m 

unauthorized    fire    and    marine    companies,    76.33 
Term   of   policy,   maximum,    1901n 
Terminal   reserve   defined,    1946x 
Territory 

limited,    1897c    (2) 

town    mutual,    1931,    1940,    1941 
Testimony 

fees,    1968f 

self-criminating,    1955o    (7) 
Theft   and   burglary    insurance,    authorized,    1897    (10) 
Title    insurance,    authorized,    1897    (8) 
Tornado    insurance 

authorized,    1897    (1) 

fire  companies  may  write,   1945c 

town    mutuals,    1931    (3) 
Tourist   floater    insurance,    1897a    (5) 
Town  mutuals 

actions  validated,  1927rn 

adjustment   of  loss,   1934 

amending   articles,    1927    (3) 

amending  by-laws,    1941g    (3) 

articles,  1927   (2),  1927n 

assessments,    1935,    1936 

automobile    insurance,    1931     (2m) 

borrowing  money,   1935 

by-laws,  must  adopt  and  file,   1897d 

cancellation    of    policy,    1937 

change  of  name,   1927    (5) 

contract   exclusive,    1900 

cyclone   insurance,   1931,    (3) 

directors,    classification,    1928     (3) 

directors,   how   chosen,    1928 

directors,    liability,    assessments,    18971,    1936 

directors,  number,   1927   (11) 

directors,   term,   1929 

directors,    to   elect   offlcers,    19£& 

division   of  towns,    1927    (6) 

duration,   1941n 

exempt    from   rating   bureau    l&w,    1946 — 18 

elections,  1928 

extension   of   territory,   1931,   1940,    1941 

filing  articles,    1927    (3) 

investments,    1902,    1903,    1931    (5) 

liability    of    members,    18971,    1933 

loaning   money,    1931    (5) 

manner    of    voting,    1928 

officer's   report,   1938 

organization,    1927 

may   assume    cyclone    risks,    1931    (3) 

may   insure   in   Incorporated   cities   and   villages,    1931    (8) 

may  insure  motor   vehicles,    1931    (2m) 

may  limit  recovery   on   each   ittm,   1931    (4) 

may  loan  money,   1931    (5) 

members  liable  for  assessments,  1936 

must   file  copies  of   all   documents,    1927    (7) 

maximum   single   risk,    1898    (lb) 

mortgage,    notice   of   assessment,    1935 

minimum    risks   outstanding,    lR9Sd 

name.    1927    (4) 


303 

Town    mutuals — continued 

no   adjusters   certificate,    1943m    (10) 

notice  of  fire   loss  must   be   attached   to   every  policy,    19461    (5) 

nonresident    member,    1939 

policy   provisions   prohibited,   1900 

policy  to   be  approved,   1932 

policy    term,    1932 

president,    must    be    a   director,    1929 

property  insurable,   1931    (2).   1931    (2m),   1931    (3) 

property  insurable   in    cities   and   villages,    1931    (Ic) 

proxies,    only   women   may   vote,    1928 

quorum,    1928 

recording   articles,    1927    (3) 

reinsurance,    1931a,    1941a — 1 

report,    1938 

secretary,  must   be   a   director,    1929 

territory.    1931,    1940,    1941 

treasurer's    bond,    1930 

withdrawal,    1937 
Trial,    where    held,    2619 

Trustees,   company    of   foreign   country,    1915    (2) 
Twisting,    1946f 

U 

Unauthorized  fire  and  marine  companies 

agent's    liability,    4575c 

to   pay   tax,    76.33 
Unauthorized    insurance 

duty    of    commissioner.    1919f 


insured    to    report,    76.33 

may    not   be    renewed.    1905 

owner's   liability   for   tax,    76.33 

penalty  for  taking  applications,  4575s 

revocation   of  license,   1919m    (8) 

reinsurance   of,    1919g 

special  license,    1919m 

surplus   lines,    1919m 

tax,    1919m    (5) 

penalty,    1919f,    4575s 

policies   void.    1941 — 64m 
Underwriters    agencies,    1946em 
Unearned    premium 

policyholder    preferred    claimant,    1941 — 63s 

return    on    cancellation,    1946d 

standard  fire  policy,   1941x 
Uniform    standard    provisions,    health    and    accident    policy,    1960 
Uninsurable    interest,    1941x 


Validating  articles 

mutual    insurance    companies,    1896m    (3) 

town  mutuals,    1927m 
Valuation 

accumulation    basis,    1959    (22m) 

amortization    method,    1951f 


304 


Valuation — continueti. 

annuities,    1950d    (2) 

assessment  life   policies,    1955y — 1    (2) 

basis,   life   fund,    1989m    (4) 

basis,   mutual    life,    1952 

certificate    by    commissioner,    1950    (7) 

disability    policies,    1950d    (3) 

fee   for,    1950a 

future   estates,    3871m,   72.15 

industrial   policies,   1950d 

life   policies.    1948,   1950,    1950b.    1950c 

mortality   tables,   see   Experience  Tables 

mutual  benefit  societies,   1959   (22n) 

securities,    1951f 

tabular   basis,    1959    (22m) 

see   actuarial    computations 
Valued    policy,    1943 

Violation  of  insurance  laws,  penalty,  1955o — 5 
Violation  of  law,  proceedings,  expenses,  1972a 
Vote 

every  meinber  to  have,   1897c 

mutual  benefit  society.   1956    (23) 

proxies,    invalidated.    1760m 

proxies,   mutual   benefit,   prohibited,    1956    (3) 

proxies,    women    may    vote,    town   mutuals,    1928 

town  mutuals.   1928 


W 

"Warranty 

in    application,    1977 — 1 

life    policy,    physician's    certificate,    1977 — 1 

standard    fire    policy,    1941x 
Withdrawal   of  fees  paid  to  state  treasurer,    20.06 
"Witness    fees,    1946k 
"Witness,  refusal   to  testify,   1968f 
"Workmen's    compensation    insurance, 

regulation,    2394 — 26 

Y 
Year,   defined,   surety   company,    1966 — 4  4 


YD  2.0503 


G77242 


UNIVERSITY  OF  CALIFORNIA  LIBRARY 


